I'm not sure what the terrestrial discussion heeds, but I'd like to think that, with the greatest respect to Sky, a project this size, or perhaps of this potential size, would only be made with the intention of broadcasting it terrestrially - where the millions are. With a lottery grant required for the search engine and trying to rekindle a programme that held audiences of millions 10 years ago, it might appear to show lack of faith or ambition (which, regardless of the outcome, we know is there in abundance) if the new series was commissioned to a channel with a known limited audience. I think that most entertainment channels on Sky tend to be comprised of either repeats or time-trailing shows - but that's what they're wanted for, and good for, and there's no criticism implied because that works.
As for the terrestrial channel discussion: I think I really depends what category KM-VR will be attributed. For instance, if the idea was set for it to remain predominantly a children's show, then it is difficult to argue against grouping it into the standard chilldren's prime-time slots, on the likes of CBBC and CiTV - let's fact it - it certainly found its appeal for the original K.M. If it is to move up a notch, into that young adult/adolescent category that seems to have been the scapegoat excuse as to the original being axed, then I really don't know. I'm just glad that BVA knows the business and has plenty of knowledge about the industry & will hold faith that the best deal for this will be settled.