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Now you've got me wondering if it's possible that this could end up as a live-action 2D-animated hybrid a la Who Framed Rodger Rabbit.^ Agreed. Only the Japanese know their own productions. Let the Japanese movie makers in instead of the Western ones.
......But still, even it is live-action movie Made in Japan, I still doubt will it be good. For one thing about Japanese live-action movie adapted from anime/manga/game/light novel, they are too faithful in keeping the non-human characters unedited. So for the Pokemon characters, I'm sure it will remain SD just like it was, or at the best, make them look like the Pokken pokemons.
Yeah, I'd rather see that than a live-action Pokemon film, whether it's Japanese or Western.I'd rather The Pokemon Company contract a corporation like Studio Ghibli to create a good animated film before they try live action considering how their current movies have been going.