I actually think a better approach would have been multiple edition lines. These would still be new editions (because new is still important) but they would go in different direction. You would have a 4e style line, 3e and Ad&D style line.
Yes and no, I agree it would be great from a gamer standpoint, and from a size of customer base standpoint. However, from a business standpoint it kind of falls through. For your plan you would need three separate staffs, etc. So in order for it to be viable for WotC they wouldn't need you, I, new players, lapsed players and current players to buy just our preferred edition, they'd need us to buy at least two of the offerings, if not all three.