If there is ever some sort of Rare crossover kart racer/fighter/cooking simulator/free-to-play iPhone game/etc, than I think the game deserve representation. Though the only other way I could imagine the series being revived, is if there is a successful series of Rare revival successes.
I for one adore Grabbed by the Ghoulies for what it, though this is probably mainly bias from growing up with it. I can recognize it's flaws, but still quite enjoy replaying it every so often. In my opinion, what it lacks in complex controls, it makes up in all of the weapons and soup cans lying across the environment. You are playing the game wrong if you are only fighting with your fists. Half the challenge is exploring the environment while in combat to find what weapons and soup cans you can use to your advantage mid battle. The other half of the challenge is adjusting the Rules that change from room to room, and dealing with, and possibly taking advantage of, the Grim Reaper if you fail.
The game was actually originally meant to be open world, but was changed due to time constraints. It seems like the sequel hook at the end was setting up a game with this idea in mind. A town would be much easier to make non-linear than an interconnected mansion. Even if it's not a Ghoulies game, I wouldn't mind seeing this idea come to fruition somehow one day.