2) When this next-level production is finally made there is very a good chance it'll be done by the Pokemon Mystery Dungeon fanbase. For the relative youth and small size of that series' fangame scene they've made shockingly quick progress on everything from sprite art to writing. Maybe it's confirmation bias but they just seem to have a fundamentally different, more holistic outlook where they think about how PMD can be enriched as a setting and what kinds of stories can be told in it more often than the Pokemon Essentials crowd who seem generally more interested in metagaming. It could even be the fault of some bad incentives with mainline rom hackers churning out kaizo stuff for Youtubers to play while the PMD fanbase is sufficiently niche and tight-knit to where they're not making games for anyone besides themselves.
That's because PMD's fan community got major juice from fanfic. Fanfic meant that PMD community speedran the process of learning how to do PMD worldbuilding and storytelling by process of terrible writing by 2012, ever since then many of the popular PMD fanfics are stellar, and therefore a large part of the fangame community is turning similar level of writing into titles.
A lot of modern PMD fanon is derived from a story from 2008 called "Pokemon Mystery Dungeon: Silver Resistance", and its effect on how people justified worldbuilding in PMD so hard that newer writers to the scene who never even read it still, from osmosis of other fics they probably read, put Silver Resistance fanon into their stories.
Basically, the PMD community spent decades of furry-fueled fanfic writing to get to the place it is now.
Pokemon main community is almost entirely gameplay focused with people not really respecting the need for good stories. It's bizarre since fakemon cannot carry your game. There are people like me who do not care to get invested into your fakemon dex and learn 100+ creatures' types and abilities only to throw them out after the playthrough. But a good story and campaign? That lasts a while. That instantly is a major reason to play the game.
Now, Pokemon DOES have tons of fanfic, but Pokemon fanfic almost always was basically shipping. There is some that isn't really like that, but it's a lot rarer- in the space a story about a trainer becoming a champion is called a "trainerfic", and unlike PMD community, the rules of writing a Pokemon world fic are far less centralized, and this is even assuming that fanfic writers are helping on fangame projects, unlike the PMD community where that is 100% true. Can Pokemon talk with each other? Maybe in general? Psychic powers? Do they not talk? How sentient are they? Is it species by species? Conditional? Sometimes it's trained vs untrained, and sometimes it's just made the fuck up as the story goes along. Even a basic question such as "How much agency do the Pokemon have" is something that basically every story has a different answer to.
A lot of fangames kinda just focus on the evil team, have the shonen legendary Pokemon moment, and dips. The Pokemon don't really have that much of a role, nor the relationships between the Pokemon and trainers, nor even the trainers between each other unless they are rivals. It's kinda sad honestly.
Pokemon fangames that aren't like Radical Red type difficulty hacks usually don't have the game design or narrative chops to make it work. Radical Red types are the best ones IMO because it does what the community does best, gameplay. When you see devs try to do both, you get Unbound, a game where the opening to the story is literally impossible if one single non-villainous group was competent whatsoever. Every single person involved in that plot besides the antagonists had to be stupid for the opening of it to work lol.
Now, here are the problems with the PMD fangame community:
1. People are using the wrong tool. People are trying to romhack Explorers of Sky, which is actually wayyy worse than the fanmade game engine-and-game Pokemon Mystery Dungeon Origins. This faithfully recreated the mechanics of EoS, but then adds a tons of other way better roguelike mechanics on top of it to make for a more... better gameplay experience.
A lot of PMD fans see the gameplay as basically busywork. While Super Mystery Dungeon IMO has good gameplay, the restmight as well be press move + move simulator, with the difficulties people talk about mainly coming from blind experience or just being kids when they played it. PMDO on the other hand has lots of gameplay depth.
It's also made to be modded, basically designed for people to make their own fangame out of. EoS romhacking still hasn't solved the problems that come with romhacking, ie. it hasn't had it's Ultimate Firered Leafgrean moment yet. Which means it's inherently way more limited. PMDO doesn't have that. It has the data for every Pokemon and any Pokemon that has sprites from the Sprite Resource is fully in, already, including all the moves.
2. As kind of mentioned before, tons of PMD fans don't really care much about the gameplay, and don't have much interest in making it Good.
Overall, I'd bet on PMD having better fangames in general in the future, but it really depends on if people realize the goldmine PMDO is. I think EoS is a bit of a dead end, and is mainly hubris- tons of the PMD community practically ignores the 3DS games despite Super being excellent, EoS has the nostalgia and cultural victory.
tldr: Pokemon main-game community didn't take the time to hone the craft of writing a story in the Pokemon universe like the PMD community did.