I would absolutely love it, but IN MY OPINION it needs to be a mix of the best of the 2 games:
2)KI combo system
3)KI button layout (NO block with a special button i hate that in MK)
4)A mix of GOOD and TYPICAL characters, not the lame ones like Bo Rai Cho, Rash (sorry Battel toads fans), Jason etc
5)And most important GOOD STORY behind it (not just, "well its another dimension and just leave it at that" )
A long time ago i see footage in MUGEN and there's pretty amazing jobs out there.