In the meantime I took the time to read the entirety of the thread and it was very interesting to have a look at your insight on the development and what should change in a sequel (which I would pay for in a heartbeat, for the record).
Hell, frankly I would pay good money even just for a remake of the first. I wouldn't even ask to change much. Increased res, a UI update and mod support would already make it worthy of a full price, as far as I'm concerned.
On a side note, I was thinking about your considerations on what a sequel should look like and while I see where you come from, given the current market, I think there would be more cost-effective ways to make the game look charming without ballooning the budget out of control.
Personally I think detailed 3D assests would be a dead end. You could easily spend the biggest chunk on your potential budget on that area and still come off with something that many would dismiss as "cheap and not up to modern standards".
In my fantasies, the modern sequel to Darklands that I never got always had an art direction inspired by Another World:
https://lh3.ggpht.com/fn5B56wZDJHs_sNy8I98-Pzz0vGwDaFydZ7Y6zgWAmeTZfaDUeoqFFT-cZ1jhtLxYzE=h900
Simple, clean and minimalistic low poly art, good animations for characters/monsters, loads of charm and surprisingly close to the original, while clearly improved above that.
P.S. What was possibly my favorite subsystem in the entire game was the "clerical magic", with faith as a currency, Saints to study and pray, etc.
Was that part of your core design as well or some late addition?