Well, I'm not sure how much the update about the alleged director not actually being involved means for the fate of this project.
To be honest IF it's actually alive, I do hope they kill it. To be brutally honest I think we've seen a "perfect" version of "The Wizard Of Oz" that is deservingly timeless. I do think any real justice can be done to the storyline with a remake. It seems like an attempt to cash in on nostolgia, and get people to pay money just to see if someone could do better.
Retellings like "Wicked" that aren't the straight story are something else entirely, and are fine. Truthfully though I think they should be using the book rather than the musical as the inspiration. I think basing something on something based on something else is usually a bad idea and tends to dilute whatever is being made to a ridiculous extreme.
Honestly the version I'd kind of want to see is something like a series based off of Todd Mcfarlane's "Twisted Land Of Oz" action figures (I think I have the name right). Give it an "R" rating, crank the sex, violence, and depravity up to the point of having blood burst from the eyes of prudes internationally (ie push the definition of the "R" rating to the limit, where pretty much anythng goes except actually showing sexual penetration), and make sure you have Tim Burton directing it.
I say this because in general whenever someone decides to "twist" or "darkly re-imagine" classic children's tales or whatever, they rarely go all that far if it's a full version of the story. I think it would be kind of cool to look at the TRUELY warped visions that we've seen in things like those figures, or various statues or artworks produced by other artists over the years and run with that. Basically do it for real for once. I mean even American Mcgee's "Alice" for all the hype still operates within what are generally seen as permissable levels and doesn't push the envelope all that far.
Such are my thoughts.