I’d still prefer LEGO-compatible constraction to third-party action-figures.
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I beg to differ.
From what I’ve seen over the past few years, the majority of Lego’s customer base is more interested in System-based sets than Technic-based sets.
While the Technic line currently has a verifiably present and reliable customer base, especially for 18+ sets, it remains a niche theme alongside the company’s other lines, most of which are system focused.
Although I can’t back up these statements with data, given that the G1 was able to be as successful as it was at the time because all of Lego’s other products didn’t sell as well, I think the current situation is clear.
Trust me, I’d prefer a hypothetical G3 to be Technic rather than System, but for the reasons I just mentioned, I still think a mostly System Bionicle would be much more likely to succeed.
While most people have warmed up to gwp tahu there is still alot of people who weren’t pleased by the system design or want such a design for a full line up of sets.
Well, you can’t please everyone with everything.
However, It’s worth noting that a G3 should mainly appeal to newcomers rather than satisfy the nostalgia-driven needs of older fans. 
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Can’t say I agree, while a system line up might be able to draw in a new crowd, alienating the old crowd like G2 wouldn’t help at all. Nor do I believe that the general system fanbase will care about a new system bionicle. Also I don’t believe in a G3 enough to think it will ever come back either way but this is about as far I’m willing to entertain this idea
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Fair enough! 
Although I’d like to clarify what I meant by the last sentence that if a G3 ever happens, it needs to focus mainly on appealing to new fans, which doesn’t mean it has to ignore the older ones.
But the fact remains that the camp of pre-existing fans is still significantly smaller than the potential new consumers.
So TLG must benefit the most viable group of buyers out there if they ever want a G3 or even a brand-new constraction line to be a success. (which we can’t and shouldn’t rule out, considering that they’ve been making more & more brick-built figures lately.)
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While it is true that a System-based Bionicle line would be a safer bet in today’s market, I don’t think divorcing Bionicle of its Technic roots entirely is a good idea. As Tarkur pointed out, most System fans will most likely not care about a System-based Bionicle theme either way, because most of them are in it for the Minifigures and the builds associated with them.
I think in an ideal scenario, System-Technic hybrid would be the way to go. Perhaps use the Mixel-joint system for smaller, Toa Mata-sized builds, and more Technic-heavy builds for larger Rahi/Titan sets. If a new line of entirely system action figures were developed, it is highly probable that a lot of new pieces will be developed in association with that (because literally every new LEGO themes does that to some extent), which could attempt to bridge the gab between System and Technic. Keep in mind, before the lift arm pieces were introduced, Technic was originally comprised of just system pieces with pin holes in them, so we shouldn’t rule out that possibility in my opinion.
An entirely system theme will also have a hard time providing large, imposing sets without requiring them to be prohibitely expensive. On the other hand, modern day Technic sets do that without any issues. So at least as far as the larger Rahi/Titan sets are concerned, Technic will have to play a role to some extent (perhaps for structural integrity, at the very least).
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I like your way of thinking!
A Technic-System hybrid G3 would be fantastic, especially in the same way you’d described it.
However, I still have found two points in your reply I’d like to counterargue with:
1. The same argument could be applied to most Technic fans as you’ve made for the system fans.
From what I’ve seen in the other parts of the Lego community, most people into Technic prefer the Real-life licensed car replica format over the more creative fantasy character & creature-building one.
So, they wouldn’t be a more viable target demographic for a new Bonkle, either.
2. Most System sets have already integrated technic parts and functions these days. Of course, there are a few outliers here & there, but those are just exceptions that don’t make rules. (E.g., the 4+ junior sets.)
From what I’ve seen in recent years, there has rarely been any System set that doesn’t feature many technic parts or some kind of function(s) in their build.
Even Nick on planet ripple mentioned this phenomenon at 7:45
in his last technic-focused Lego rewind episode:
But putting aside all of this, I agree with you on everything else. 
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I am already aware of that. Bionicle/Constraction has always been in its own niche, never being particularly appreciated by either Technic or System fans.
However, I am not suggesting using System or Technic in order to appeal to those demographics, rather, as a way to achieve the most Bionicle-like sets without using any actual specialized Bionicle parts (except for masks and maybe a few weapons, I’d argue those are essential).
Ideally, a new line in this style will attempt to bring in new fans. As long as the line has a good story to go along with it, I don’t think that would be that difficult. It worked once with Bionicle and it’s still working with Ninjago, so I don’t see why today’s kids wouldn’t find it just as appealing if there’s something that captures their imagination.
The biggest advantage of a System-Technic hybrid though, I’d argue, would be that it would be much more recognizable as “LEGO” to general audiences, and thus, potential new customers wouldn’t be alienated simply by the fact that “it doesn’t look like LEGO”.
Which goes to show that LEGO doesn’t necessarily have a problem with combining the two, and such a line would be possible, provided LEGO actually wanted to make it.
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I think you’ve misinterpreted what I said in my previous comments.
I’ve never implied that a G3 has to be only Technic or System oriented to be successful.
All I did argue was that it has to be mainly System centric to appeal to a broader audience to maintain its success through its run.
It can’t be only System-centric for the same reason you mentioned, but I’ve never stated otherwise.
However, it does need to cater primarily to system fans for all the reasons listed prior.
Trust me, I would also vastly prefer a Gen3 to be at least 70-80% Technic focused, but considering the current conditions and trends on the market, it would be only viable to TLG if it mainly stays System-centric.
As for the Technic+System hybrid theme idea:
Yeah, that would be the most viable option for TLG and probably the most effective in drawing attention to it. 
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