I 100% fully agree with you. The early mini-comics version of Masters of the Universe is the most cinematic. It would be more adult/barbarian oriented and less super-hero-ish. It would also be the easiest to do and, perhaps, the cheapest. I think that with the right story, a great MotU movie can be made with a small budget. If it does well, increase the budget for the sequels.
I always cite the first Star Wars and Star Trek II:TWOK as perfect examples on how to create an epic and amazing movie with a small budget. It CAN be done with MotU, and they can still keep the whole movie on Eternia.