The idea that a game like EQ updated will not attract a sizeable new audience 20 years later is silly. Very few people play mmos in the grand scheme of things, and why would they? Those people probably represent about 1% of the people who enjoy fantasy.
It does feel like a missed opportunity to just update the graphics and sell an anniversary edition of the game. I would think it would make a decent profit return without a huge effort being put in. Then again who knows with Daybreak.