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There's a few ideas I'll discuss here. Pokémon Red and Green were the only Pokémon games developed in isolation, with no other Pokémon games to draw from. This led to a self-contained, unique experience that the rest of the series would never match (and Gen 5 failed miserably to rehash).
In terms of mechanics, Gen 1 had a very unique, and I'd argue soulful, set. However some modern changes don't degrade the character of it, and only help things. For an overview of what I'd do:
>Genders aren't in the game, except for the Nidorans.
>DVs and Stat Exp. are removed entirely. The Pokémon's base stats are what you'll be working with. This goes for the player and the AI.
>All glitches that can be fixed will be, except for MissingNo, which will become a feature that is heavily changed from the originals.
>Sp. Atk and Sp. Def are their own stats.
>The Physical/Special split is implemented, and AI movesets are picked with this in mind.
>Ghost is actually super-effective against Psychic
>The Steel and Dark types are in the game, to make Magnemite's line unique and for other reasons I'll expand on in a reply.
>Abilities are not present
>Breeding is unnecessary due to IVs and abilities not being present.
>The Bird type is actually implemented, and I'll list the changes that brings in a reply to this post.
>BW2's Repel system is implemented.
>Friendship is implemented, not Affection which later games use to be even easier than Pokémon always has been.
>The Running Shoes are added, similar to FR/LG.
>The Catch Rate mechanics match Gens 3 and 4, but "You missed the Pokémon!" still exists in place of the ball shaking 0 times.
>The Badge Boost is gone. The player does not need such advantages.
>The Bag Space Limit is expanded to match Gen 3, from the original 20 to FR/LG's 42.
>Held Items are in the game, essentially mimicking FR/LG.
>Weather is implemented, and certain overworld areas will have weather.
>Day/Night is implemented, but will not affect wild encounters.