I know that there are some ideas being tossed about, and since Mark Frost and David Lynch own the show (and the rights to do with it as they see fit), the only thing needed to make it happen is the will to do it and the financing/studio to pay for it.
Regarding the first part, David Lynch is semi-retired and is more interested in doing small personal projects and his Lynch Foundation, and Mark Frost is busy working on his new young adult series (and future film) The Paladin Prophesy. If Twin Peaks returns, I’d wager it will be Mr. Frost doing it, with David’s blessing and a potential executive producer credit… But it all depends on that second part – financing.
Even with today’s low-cost equipment for digital filmmaking, producing a TV show costs money… Lots of it. Actors, crew, production personnel, location costs, sets… It needs the backing of a studio or someone with deep pockets. And with the economy is still very soft, and Hollywood is more risk-averse than ever. The good news is, if Lynch/Frost Productions decides to bring back Peaks, it is a “known quantity” and as we know studios love reviving those type of things…
If it does comes back, though, it’ll just not be the same. Several actors may not be interested in returning, everyone is much older, the actor who played BOB passed away several years ago, and if David Lynch is not actively involved much of the surreal aspects of the series could be missing. Will it still be good? It depends on the crew Lynch/Frost brings together… but I am fairly confident, based on Mark Frost’s creative output the past few years, that it would be very good indeed.
(HOW it would come back is another interesting to think about. A book? A miniseries? A new series? A movie? A web-only series? My guess would be a web series… That would then be sold as a set on DVD. A key test, in my opinion, will be how the new Arrested Development season does next year. If it is successful, the major backer that would pay for a new season of Twin Peaks could be Netflix…)