Though the game is based on the original Spyro games.

I'm afraid I must respectfully disagree with your assessment of the situation. Having some sheep cameo is one thing, but while Skylanders clearly isn't taking much inspiration from Legend of Spyro, saying it's "based" on Classic Spyro is going a little too far. "Has shout-outs to" or "thematically derived from to an extent" might be more accurate.

Really, I just consider Skylanders a seperate series.

Though the game is based on the original Spyro games.

*bleep*

However, if Skylanders proves to be popular, it will continue - with or without Spyro.
Those Rabbids are doing fine without Rayman.

An older series being rebooted (sortof) as a more child orientated game, with a heavy focus on very new elements relegating the title character to a minor role. Activision seems to simply be using spyro as a scapegoat to launch a new idea, and hopefully at the same time gauge spyro's popularity. Perhaps the more this series progresses, spyro may well be spilt from it entirely (much like rayman) and down the track we wind up with a beautiful new game that harks back to the oldest incarnation of the series and ties up story threads (the upcoming Rayman Origins)

Sorry if this has been discussed to death but I was wondering on everyones thoughts and opinions.. Could this be a very positive step for spyro, and potentially an even bigger step toward returning to the original series?