There was a blog called "surfer girl" if I recall correctly, that used to have tidbits about various industry secret projects, and around 2007 or 8 posted a few pics of a XBox/PS2 King's Quest reboot. it was a plaformer with SD characters, much like the Space Quest one. Sadly I don't have the screens on hand. Could that be it?
I'm pretty sure that SK would've taken the series into a rather mature direction