Of course that would suck, but the live action version of Death Note didn't make the original version any less good. You know how life is, you make something good and then somebody makes a cheap imitation or bad parody.
Of course they could make a bad live action Kingdom Hearts thing, but if we got a good anime series, and hopefully a handful of really good CG films for the important parts (the relationship between the Clone Wars series and prequels), it would be worth it. If somebody does a good job with KH in one area, and somebody does a bad job elsewhere, I didn't lose a good KH, I simply just gained one good one.