I think he thinks that if he crowdsources re-creating individual scenes from the movie and then stitches them back together into a fan-made re-creation of the entire film, this will be legally free for anyone to view.
There’s been a few films done like this, Star Wars, Robocop, Shrek, Spider-Man. The Robocop one especially was fantastic, largely in part due to one particular scene that I’m sure people have seen tenfold like I have.
I think Lost World wouldn’t really garner a lot of enthusiasm as much as the first film would if done.