AbdulAlhazred
Legend
While 3.5 had pretty much played out, there's every reason to believe that a new revision based on 3e would have worked, given the status of PF right now. WotC would have had far more license to change things than Paizo did with PF, and could have maintained the basic feel of the game while rewriting the mechanics from scratch.
And to this point, that's my frustration with WotC and in general. While I and some arbitrarily large number of others are "3.X" players who have homebrewed the system and incorporated new non-WotC rules, no one has really tried to create a new edition based on 3e for people who actually liked it. PF isn't really a new edition, and 4e is catering to people who don't like previous editions of D&D and want something completely different from an rpg (which is fine for them). Trailblazer is the closest thing I've seen to an attempt to substantively analyze and revise the game, but that's not on a satisfying scale. If I had an infinite amount of time, I'd write a new D&D myself.
I think the problem is once you go down that road what you end up with is SOMETHING along the lines of 4e. I mean it could be a different game in many respects, but the problems with 3.5 as I see it are MCing, which is a major component of the game, and the entire magic system, and the proliferation of different sub-systems, plus some less critical things like the saves instead of defenses (4e's flipping of that was brilliant). Now, some of those things could be handled in a way that was more like 3.5 in some sense, but frankly look at DDN. It isn't actually THAT much like 3e. The problem as I see it is that somehow in the design of 3e some BIG basic mistakes were made. The object was to rationalize and perfect 2e in a sense, but nobody had ever thought about what it was exactly that 2e was trying to achieve and whether it was doing it in a good way. While 3e shored up a bunch of the mechanical issues it did nothing for the larger underlying issues, and it failed to consider D&D as a GAME, which was also a lot of the problem with AD&D in general. IMHO 2e is really well-written in one sense, but it is a TERRIBLE game in another sense. So, IMHO 3e and development in the 3e direction are done. You can proceed, but only by completely rewriting the game in a major way, which leads you to something like 4e. Even if it was different it would trigger the same reactions, its a different game. IMHO the CONTENT of 4e isn't the issue, it is the fact that it is not your pappy's D&D, even nominally as 3e is.
The reason PF isn't a new edition is you can't really DO a new edition that is much like 3e. Trailblazer is about as far as you can go, and even that is really not solving 3e's problems, not even close. The point of all this is WotC was at a dead end. The success of PF is based on CONTENT and STYLE, not on game system. WotC has had 15 years to develop a style and learn how to write adventures etc. They've NEVER succeeded very well. Now and then they DO write a decent adventure, and they have done some quite nice source books, but nothing really earth-shattering. They've basically done NOTHING in the setting dept. TSR pumped out 20 different settings, at least, which was maybe too much of a good thing, but WotC has issued exactly ONE D&D setting AFAIK, Eberron. Its not bad, good even, but even that was an outside solicitation. Meanwhile Paizo pumps out stuff chock full of good writing, style, cool artwork, etc to the point that in the last 3 years they have buried the lifetime output of WotC 4x over in that department. Clearly that's the difference between the two, mainly. Paizo has figured out how to do content well and make some money at it, and WotC hasn't. No amount of revised 3es or 4es or DDNs is going to make any difference if they can't fix that. Personally I think they aren't capable of it. They are too wrapped up in Hasbro brand management type thinking. Paizo's guys are just over there thinking about how to make cool stuff. No doubt they have a degree of product line management, but WotC clearly plots it all out in detail in committees and focus groups. You can smell that stuff, it stinks of rehashed ideas and groupthink. Now and then something really good slips through, but I'd note that it wasn't until the D&D groups management fell apart in 2010 that some interesting material slipped through.