No, modern does not always necessarily equal good (I haven't even heard Bonnie's version of Two out of Three mainly because it makes my ears hurt even to think about it - much like the idea of Barbra Streisand doing Left in the Dark..)
And yes, Jim produced Tanz - so far my favorite is the reinterpretation of Tonight is What it Means (I thought I liked the Streets of Fire version until I heard this - now it sounds downright weak in comparison).
Can't wait for Bat III but not holding my breath either - I've said it before that until I see a firm date, I refuse to get too excited...