The original Charles Band's "Puppetmaster" was an ok B film that stalled in various places as we waited for the stop motion puppets to do their thing. Now for Charles Band a B film is like his "Lawrence of Arabia." Since then he's been doing sequels, reboots, out right thefts of his own ideas to ultimately the apathy of everyone. Still, the original film had promise. I say get Del Toro and do a remake.
It's not just the idea of little puppets killing each other that make it a good candidate for a remake. There's also the entire "psychic agatha christie" turn of the plot where a bunch of people with psychic powers who really detest each are forced to get together in a large, dark, scary hotel. Get the right cast and this thing would tick like a swiss watch. I would also revamp the designs of the puppets. They had a certain funkiness but their reason for existing as such was questionable. Why put a huge drill head on a soldier puppet? I just don't see it, it would at least need some more justification. Anyway that's just my two cents.