It looks like we needs both. In addition to a somewhat sizable PH, DMG, and MM, I suggest that the basics of the game should be extracted into two booklets: "Dungeons & Dragons: Quick-Start Rules"
The DM's booklet would detail the basics of the game, have a few monsters, and present a sample dungeon crawl. The Player's booklet would have a few basic classes and several pre-generated characters presented as examples. By keeping the DM and Player's booklets separate, gameplay would be easier for new players, who could keep the booklet handy while they played.
The booklets would be sold together and would compliment an accessory pack containing dice and a few minis.
This would allow for new players to investigate the game with a minimal investment in time and money.