Hm, I'm not sure I agree that we should double down on wiki markup. That's partly the sunk-cost fallacy I think. Markdown has succeeded in large part because it's generally *nicer to write*, with fewer corner cases in the syntax and fewer special cases that apply only to mediawiki ([[..]] syntax, magic RFC links, {{..}} behavior, etc). I certainly prefer to write markdown where possible, although that's in large part to the `...` construct, which is extremely useful in the type of writing I do most often.
We have written a markdown-to-wikitext converter using Parsoid. The main thing that "the less useful format' (markdown) is missing is an extension mechanism (which other competitors such as restructured text include). If a standard extension mechanism could be defined for markdown, then you could build a template mechanism and special "link to an WMF project" syntax on top of that.
As it turns out, the template mechanism we have for wikitext is pretty fragile as well, in addition to being completely non-portable to non-mediawiki usage. And it's pretty fundamental! So thinking hard about a more elegant and general template mechanism -- or at least cleaning up some of the grungy corners of our existing mechanism, like token concatenation and start-of-line fudging -- would be vital if we actually wanted to push "wikitext" further into the world.
But in any case, I do think that work on "wikitext simplified" (syntax and templates) would be interesting. Lots of our power users would like something that is very close to the wikitext they are familiar with, but without some of the hidden pitfalls. Lots of our engineers would like to have a parser/template implementation which is drastically simpler than what we have now.
But the other side of this ought to be (in my opinion) decoupling the core of mediawiki from the particular choice of markup language. If you want to have a pure-VE wiki with HTML-native storage, you should be able to. If you want to use markdown (+a template mechanism) for your wiki, you should be able to do that. Similarly with "legacy wikitext" and "wikitext 2.0" and who-knows-what in the future. Step 0 was gwicke's introduction of "lossless round trip translation" as embodied with Parsoid, which decoupled the user experience from the actual markup stored in our database. Step 1 is completing that process so the entire mediawiki core is markup agnostic. *Then* we can have a thousand flowers bloom. If one of the hardy flowers is "simplified wikitext", hurrah. If users really prefer markdown syntax, good for them. We can make both work, and (to a large degree) even let "edit in markdown syntax" co-exist with "edit in wikitext syntax", with the content represented in the underlying database using some other format altogether.