^ Yeah, I agree (with you, not him). You don't have to do the Penguin as a grotesque, a la Returns. He could simply be a short fat and ugly gangster, who hates the name.
(In hating the nickname, that is.)
I can see Nolan's point, though. Quite aside from the grotesque monster in Burton's film, a fellow going around in stereotypical capitalist garb is a little silly for his films. But that could be toned down to a tendency to dress in a faux upper-class manner. I think the character would work - and he's always been my favourite villain from Batman's catalogue - but I can live without seeing him in Nolan's films.
I actually like
DeNiro's take in Batman Returns
, you see. I think it's the strongest preformance in that movie and in the Burton/Schumacher pictures in general.