I really wanted them to do a He-Man spinoff of the new She-Ra, set in the same universe. That would have been so cool! But I get the appeal of continuing the original storyline and even using toys that didn't appear in the original cartoon; this is probably more for long-term fans than to get new people to enjoy it, anyway.
The live-action Masters of the Universe is hilarious cheese and I love it. I wish they'd have made a sequel to that one, but sadly it was such a big flop it killed the studio and got a bunch of other movies affected too (most notably the Cannon Films Spider-Man that was canceled, and the awful Superman IV)