I guess to clarify, I don't mean for it to be rebooted exactly like DMC, just that Capcom hands it over to another company to develop, how it turns out is up to imagination. They don't have to dumb it down or anything.
I honestly don't think Capcom themselves at this point are competent enough to reboot the franchise in a way that's worth a damn. If anything giving them a fresh slate to work with would give them more leverage to turn RE into what they really want it to be (AAA action game on par with CoD).
If it were up to me I'd just wrap up the current storyline in RE7. From there Capcom should create spinoff series that could follow the more action driven style of RE4-6 and the classic horror style at the same time. I really don't see a reason why we can't have both if RE is truly their biggest money maker.