Thats interesting, I wonder how he would have gone about it. For some reason the select-a-mission from the hub style of game that days is seems perfect for a handheld console, but I can't really see it suiting a home console. Guess we'll never know, and hopefully everyone will stop panicking about the mistranslation now
Well, it might have something to do with having to strip out multiplayer elements (since it's probably not cost effective to do something through PSN through a server) or having to redo a lot of art assets.
Since doing one or both would probably tack on extra dev time -- and Nomura's "goal" being to get KH fandom (at large) up to speed on the series (before KH3, I wager), I can see why that decision was made.
With the cutscenes, they basically replace the models and the levels with their counterparts in KH1/KH2 with better graphical fidelity. You can take animation data from Days and apply that to the 1.5 cutscenes -- the process isn't particularly labor intensive.