Im still kinda confused. Platinum was actually a good developer for that game, but the focus on repeating Starfox64 and to have that control scheme was... well, miyamotos decision and the downfall of the game.
Bayonetta has chapters. Would work well for Starfox. They have experience with Shooters (Bayonetta Sections, Vanquish, Nier,...). Having the game expand and having setpieces, secret sections, new weapons / manuvers / ships being unlockable like in bayonetta would work great, having different dificulty setting and a grading system would work great to.
In other words: taking Bayonettas structure but instead of a batshit crazy story having it somewhat more "grounded" and straight forward + swapping character action gameplay for shootemup gameplay, and i think it would have worked great.
Otherwise, having it be more of a straight shoot em up with smaller budget (and smaller price...) would also work well, having a handfull of mid fidelity levels and banking on the charm of the characters, would work well.
Its... i really dont understand whats so hard for them with this franchise, especially, it will never be a huge seller, but it should not be to hard to get it to 1 or 2 million with an aproachable well made charming title.
Graphics: most of it could be in space or over alien planets, so keeping it simple but stylisch could keep the graphical cost down, and instead have some good models for a handfull characters that you often see like fox and friends.
Dont overdoo it, style over fidelity would be the way.