I have seen it done well. Not necessarily by a non-Japanese games company, admittedly.
On the subject of Mr. Avellone, I'm not sure I would want to see him back on Fallout: PS:T aside, he seems to have more misses than hits on his CV, at least according to his Wikipedia page. Icewind Dale was enjoyable, but instantly forgettable compared with Balder's Gate. Then we've got things like Lionheart: Legacy of Arcarnum, which ... somehow I could never persuade myself to play much beyond the end of the first act, for some reason. Come to think of it, I never finished F2 either (I bogged down on the Oli Rig IIRC). I did finish Fallout though.
Mind you, my favourite game using the engine from F1 and F2 is still Arcarnum, and that includes the Fallout games.
I think probably Avellone is one of those writers who, when he gets it right, he does very well indeed, but I don't think he gets it right all that often. Or when he does he does it by recycling old stories and settings.
That said, I am looking forward to seeing what he does with Torment: Tides of Numenera.