It makes complete sense IMO. There is no one around dying to make a BK3, and the last n64 game was in .. 2000? Look at what BK nuts and bolts did. Look at what Yookla Laylee did. Nothing.
Yes the series could be revived with an incredible entry that was inventive and defied exceptions. The point is that the kind of team/lead person that could deliver that kind of an experience has their own ideas, and does not want to work on someone else's creation.
We've seen this over and over again across many mediums. Just look at recent movies. The non-Spielberg Indiana Jones, which is a flop. The Disney Star Wars movies. The non-Phillip K. Dick Blade Runner movie, which I know some people liked, but was so freaking stupid in relation to the original that it's embarrassing to watch. Visually great, but material so banal it shouldn't have been made.
Let's go to games. How about the Bloober Silent Hill 2 remake that looks like a giant turd. The Crash games no one cares about. Those Castlevania sequels that did not perform well. Killer Instinct on Xbox was a dud. The disastrous Battletoads game. I'm sure I could think of quite a few more if I cared. I think Kirkhope is right, and looking forward is the only way to go.
Okay, but we need some context with Nuts & Bolts and Yookla Laylee: they were either not what the audience actually wanted, or were just inherently flawed games in areas of design that didn't capture what made people really like games such as Banjo-Kazooie.
I don't 100% buy the idea that the only capable teams wouldn't be interested in the BK IP, either. Sonic Mania was arguably the best Sonic game since Generations when it came out, and was made by hardcore fans of that IP. Obviously they had their own ideas too, it's why they're launching a new IP soon. But clearly, they also had a desire to work on Sonic since it's an IP they loved, and would have done Sonic Mania 2 if Sega weren't against the idea.
So because of things like that, and quite a few awesome games that've come out which seem like obvious love letters to older IP (that the creators of those games would likely love to work with officially if they legally could), I don't believe that the only people able to do a new BK game justice would just also happen to
not want to work with the IP if given a chance.
A lot of the movies and games you're pointing to had clear creative problems that would've given them trouble even if they were completely different/original IP. Star Wars ST is trash because there was no cohesive vision or quality control. I personally actually quite liked BR 2049, FWIW. Bloober's SH2 remake, if that fails, again down to lack of a cohesive vision, respecting the source material, and quality control. You could slap a new IP on that and get many of the same issues, we already kinda saw that with The Medium. Crash 4 was a case of bad timing.
That recent Battletoads game was
NOTHING like what people actually want in a new Battletoads, that's why it failed. And Killer Instinct actually did very well at first; it was well-received and had a healthy community. The transition between Seasons 2 and 3 are mainly what killed it (along with arguably Microsoft not caring to continue it anymore).