I was never a fan of what MYP did with Grayskull, but more and more I'm liking what MATTEL is doing with him. They are tweaking the story bit by bit to make it fit in better with the classic mythology, without purposefully ignoring or stepping on the toes of that which came before him. I also like the use of him in the alleged movie script.
There are still a few holes that need filling - such as the Eternia Towers and why Grayskull Tower existed before Castle Grayskull; and there's still no clear-cut answer for how She-Ra fits into the mix, not to mention the whole Keldor time travel debacle. But I'm sure the marketing folks at Mattel are trying to figure out answers to these questions and more.