I fully support dumping the racist crows (or, like, keeping them but making them regular characters instead of cringey racist caricatures), but not Timothy Mouse. Talking animals would work fine, just like they worked in Babe, Homeward Bound, Charlotte's Web, and many others.
My feeling on the live action is . . . why is Disney so enamored of it? Why can't they redo Dumbo, or any of the others, as a new animated feature? An elephant with giant ears is so much easier to make 'cute' in animation rather than 'realistic' CGI.