Well, I was thinking revise. I haven't played a Sonic game since Adventure 1 (others have looked decent, just haven't picked them up, and the lousy reviews never motivated me to do it).
The more I think about it, the more I think that Sonic as an icon is pretty much done. Problem is, when Sonic started out, he was pretty much a bad ass. In an era where video game heroes fought for good (ala Double Dragon, etc) and were just nice (like Mario), Sonic had attitude.
Now, everyone does. Sonic looks cute when up against Kratos or someone from GTA. So, he needs a major makeover. Either make him a nicey nice icon with Mario esq storylines, or turn him the other way. Though, since I don't think they'd ever have Sonic pull a gun and shoot Tales, that might not work.
Then again, for all the complaining that 'gamers' do, Sonic games sell, and sell well. So, maybe nothing really needs to be changed. Someone is enjoying them.