The problem with the Wankel is and has always been apex seals. You need to rebuild it at least once during a vehicle lifetime. I would not say it is safe from this fate, even with modern seals and a hybrid application.
I thought it was the horrible compression and oil burning. Apex seals seem to last if you don’t do silly things to them but you can’t solve inherent issues with the cycle design.
For comparison, rotaries get about 100psi of compression, a modern gas car can more than double that. More compression, more efficient burn.
I've read that oil burning (which is directly tied to the apex seals) has been fixed in modern engines. Compression is a somewhat configurable matter, and can be high in a low-torque generator (battery hybrid) application.
