It has been done. Godzilla vs. Megalon was one of the cheesiest of the Showa films, and should not be repeated in my honest opinion.
Like I've said before, Toho monsters don't belong in this Legendary Pictures and WB franchise. Both studios, even though it's really just Legendary now since WB split from them, have enough creativity and originality to create a franchise of their own creations and make it succeed.
Copying Toho's success is nothing short of contrived, forced, irresponsible, and disrespectful to the original source material.
If Legendary can't make a successful franchise with their own creativity and originality, then they don't deserve to work with the material at all.