If the simplified toys are more like the BW/Classics figures then it is a good option.
If the simplified toys are as simple as the gravity bots from DotM (stand up and a few panels swivle) or are simply oversized legends, then Hasbro will have shelf warmers on their hands (moreso than usual).
Kids are very finicky and picky with their toys, and most never want to be associated with toys that are deemed as "baby toys" in their eyes.
I have a heap of old toys in my classroomk for free play and wet weather and the toys that the kids deem "baby toys" includes good toys like duplo, some power rangers and ben 10 stuff, all considered by 7-8 year olds as not for them. The favourite toys? "real" lego, pretend shop/cash register and some transformers (battle pack Megs vs. Optimus, Energon/Cybertron toys.
If they can find a happy medium between FAB and TF1 for the majority of the transformations, it would be fantastic. Classics/Generations level transformations are perfect for young and old, with simpler transformations for legends class, harder transformations for some larger/collector aimed figures (as they have stated some generations figures will be).
Looking For: Wreckers Saga TPB Collection (with Requiem)