Godzilla has undergone all kinds of different looks, so as long as they can avoid the giant iguana look, I doubt many purists would be put off by attempts to improve on it.
And Godzilla has probably had even bigger changes, at least in character, then most other popular characters. He starts out more as a force of nature, then becomes a kind of hero and even a kid's superhero type of character, but there have been movies where he's been bad. Then there's "Giant Monsters' All-Out Attack", where he's not just bad but out-right malevolent, and the normally evil Ghidorah is on the good guys' side.
I remember hearing that the origin idea for Godzilla was for his appearance to look burnt, as if he'd been a victim of the atomic bomb. That doesn't always come off in the old movies, as he simply looks like a reptile with reptilish skin, but given how this Godzilla looks I wonder if they aren't trying to play on that idea.