Should it come to fruition, I think that the style of graphics used for SF4 and 5, or even Okami would work well with a 3D Samurai Shodown. The Japanese oil paint style and effects were used by it in 2D form in the later games, particularly SSVS, and they look great. Still, you'd need some talented 3D artists to make it work.
Of course, that's all just shooting for the moon since this rumor was pretty much squashed by Oda. Another game is inevitable, but clearly they're not ready to announce anything yet, assuming its even being worked on it all, which I doubt. They'll probably get KOF XIV out the door and then move forward with this.
On a slight tangent, I wouldn't mind seeing Sam Sho characters in a KOEI musou game, perhaps the next Warriors Orochi whenever that gets made. Wouldn't be a bad way to get some licensing dollars and exposure either.