I would be fine with some of the storyline taking place in the 2000's, but Lydia's time stops would work perfectly for me, too!
If Burton does direct, for what it's worth, he has for years made most if not all of his movies in a studio (Pinewood) in London. To my knowledge, Sleepy Hollow, Charlie and the Chocolate Factory and Sweeney Todd were all filmed there; I don't know about Big Fish. However, the New England setting is so important for DS that I wonder if he would indeed shoot it on location or try to recreate it in a studio. For what it's worth also, before Sweeney Todd, Burton was set to direct (and produce?) Jim Carrey in a film about Ripley's Believe It Or Not, which I think would've involved going on location, so at least Burton wouldn't necessarily ALWAYS film in a studio. But then again, that film hasn't gotten made. But anyway, it's just a thought that the studio seems to be Burton's preference these days...
Cathy