Hasn't He-Ro I had enough indignities heaped on him in Classics continuity (the name 'Ro', the loss of "Most Powerful Wizard in the Universe" status, the sudden death, not even being the archenemy of a major villain) already without confusing him with He-Ro II?

I've toyed with a 'future' He-Ro going back to Preternia in some of my own story ideas, but that's a way to get him into 200X continuity without having to sideline, transform or ignore King Grayskull. I also use it to bring in my re-conceptions of the Three Towers, Light Hope, Horde Prime, the 'Goddess', and other elements that would take some work to fit into 200X after "The Power of Grayskull". It would bring things full circle by having He-Ro hide the power within a young Grayskull, though.

And to be honest, Dare/He-Ro II has never clicked for me. As far as I'm concerned, He-Man wins the ultimate battle against Skeletor, finds a worthy queen (maybe Teela, maybe not--I've always had a soft spot for Castaspella if Teela's unavailable) and rules Eternia in a new era of peace. She-Ra helps defeat/reform the Horde Empire and lives out her life with Sea Hawk on Etheria, although she travels to Eternia quite often.