I think it would be really cool if there was a Okami sequel that took place in the modern day, or slightly before it. Imagine Amaterasu wandering around Fantasy Modern Japan, painting graffiti on buildings and cleaning up pollution. Helping restore towns from various natural disasters and rekindling faded faith from centuries gone by.
I just want more wolf goddess adventure, okay.
The twist is that Amaterasu has to adapt to the modern era by painting in color, and her partner is talking to her via an electric radio on her collar. Instead of just imps and onis and other fantastical Japanese mythological creatures, enemies could also be manifestations of stress from modern life, like trains or cars. :>
Japan does have a bunch of "urban legends" based on modern stresses already.
Teke-Teke (girl who cut bisected by a train and drags herself along carrying a scythe) might be a bit gorey for the franchise though
Oh gosh, yeah! Folklore and urban legends from the modern era would be really cool, too!!!