The 1961 movie shifted uneasily between the stylized and realistic and ended by falling between two stools. I would not be stunned if that happens with this version also.
One difference is that the first movie was not a period piece -- some critics thought it really had something to say about contemporary young people and gang life --and this one is set almost seventy years ago, when WSS was new.
I think the Spielberg who made E.T. might have been a reasonable choice, although I get what you're saying. I'm not sure I'd choose Scorsese in any era, not because he wouldn't have an interesting take on this New York story but he'd want a different kind of score, most likely, and not unreasonably.
I might nominate the young Spike Lee, who was crazy for vivid colors and movement and also had American racial/ethnic urban tensions as his subject.