I enjoyed Shin Godzilla for what it was. It was fun and enjoyable, but honestly I do not want to see a sequel. I think it was good as a one shot, just to have something crazy and different. But I would love to see Toho go back to the classic Godzilla that I've loved and enjoyed so many years since I was a kid. I also want Toho to finally go back to a Godzilla movie series where the story of one movie is continued to the next, like the Hesei series. Heck i wouldn't even mind if Toho continued where the Hesei series left off, with Godzilla Junior now all grown up and ready to take on new monsters.
As far as CGI or suitmation, I think Toho proved that they can do a pretty darn good job with an all CG Godzilla, so I wouldn't mind if they continued with it. And at the same time, I wouldn't mind suitmation either if enhanced with CGI.
Whatever direction takes the live action series, I really hope we hear something from them soon. In the meantime we have the animated movie to keep us busy