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AAAACK! Another of my favorites, Fables, to hit the Hollywood mangler? At least with the Legion, most people would be starting fresh with the characters (except Superboy, if they included him) - no preconceptions as I would have. With Fables, I wonder if you'd get people in up arms because the Big Bad Wolf is a human security guy, or Prince Charming is a total creep.
After reading everyone's ideas here, the concept of a Legion movie seems a lot more feasible. I still don't have a lot of faith that it would be handled well - but I almost wish there would be one now. Maybe if you guys write the script, cast the characters and direct.