Speaking with 1UP, Rare's Mark Betteridge was asked about the chances of us seeing more Rare games on Xbox Live Arcade now that the original Banjo Kazooie is up for download. Surprisingly/fortunately, Betteridge did not beat around the bush:
Sure! It's something that we've been looking at. It's all about building a platform where we can do that stuff without impacting the newer things here. It would be great if we could get Killer Instinct coin-op on there.
You know what, Mark? That would be pretty great. A Rare Look at Rare [1UP]