If true, this is one of the best stories i've ever heard!
I am sure that such a game would be great; Monolith has shown several times that they can produce great RPG's, and with such a director I don't see an issue.
Yet, taking down FF or DQ is a different story. Baten Kaitos or ToS were great RPG's (on a bad performing platform, but still) and failed to sell well/great respectively, altough the one was a Nintendo-published exclusive and the other one a sequel to a known franchise.
It must be considered that next to FF and DQ, RPG's are not selling that great in Japan. The games coming closest to those two are other Square RPG's (Star Ocean or Chrono for example) and only after them known franchises from other developers are coming; Tales or Breath of Fire are coming to mind.
As Soriku said, this game needs heavy advertisement and a lot of hype to sell well.
On another note, this seems to be further evidence that Camelot and Nintendo are not working together that close anymore. Camelot made the Golden Sun games and all the Mario Tennis/Golf games, but their last work was I love Golf for the PC. Of course, this game is coming for the Wii now, named Wii love Golf, but it's not published by Nintendo but by Capcom. On the other hand, maybe the "Camelot RPG for Wii" which is said to be in development is already to far into development as Matsuno could have brought his own ideas into it.











