The prospect of Banjo coming back now just reminds me of the sheer stupidity of Nintendo selling Rareware during the GameCube era. You give up all those IP's (Banjo, Conker, Perfect Dark, Jet Force Gemeni) and an experienced FPS developer for what? Money, something you've got plenty of. Stupid. I look forward to what Rare produces this go-round.
It seems to me Nintendo made a very wise choice. Their output is horrendous. MS has almost nothing to show for the investment.