I'd love to see this! As much as I loved Frozen, it's a shame they didn't stick with the original story. From what JimHillMedia has said, they had trouble developing the story into a workable screenplay because the original tale's ending was so anticlimactic--Kay and Gerda just walk out of the palace after Gerda breaks the spell and there's no final confrontation with the Snow Queen at all.
Now, I agree that this ending was anticlimactic and I kind of wonder why Andersen took that route...but what would have been easier, tweaking the ending or writing a whole new story? (Although Frozen's success, given that it's pretty much an original fairy tale, gives me hope that they might adapt lesser-known tales.) Plus, the story has so many elements that are tailor-made for Disney...a brave heroine, clever animal sidekicks, many interesting and colorful side stories and supporting characters along the way (that Robber Girl!), opportunities for splendid visuals, a memorable villainess. Have any of you seen the Russian-animated one from the fifties, the one that was dubbed over with the voices of Sandra Dee, Tommy Kirk, and Paul Frees? It's the best Disney movie Disney never made!
So if Disney does this, we've got the best of both worlds. Besides, I understand that years before Frozen, Tokyo DisneySea was planning a stage show based on The Snow Queen, with a score by Alan Menken. Maybe, just maybe, if they make this live-action version a musical, they can recycle the score?