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Originally Posted by Optimus Neeson

It's plainly stated in one of the Toho films that Godzilla is a mutated "godzillasaurus", a dinosaur. He is a dinosaur, and his original design is meant to be understood to be a dinosaur.

http://en.wikipedia.org/wiki/Godzilla_(1954_film)

In the original 1954 film he is not referred to as a mutated dinosaur. At most his size is compared to one. You said "originally" and my comment was specifically in response to that. Yes, other films in the series have altered his origin story from time to time, but his design has stayed relatively the same since inception.

Also from Wikipedia:

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Inspired by the fictional Rhedosaurus created by animator Ray Harryhausen for the film The Beast from 20,000 Fathoms, Godzilla's iconic character design was conceived as that of an amphibious reptilian monster based around the loose concept of a dinosaur with an erect standing posture, scaly skin, an anthropomorphic torso with muscular arms, spikes on its back and tail, and a furrowed brow.

So as I said, dinosaurs were part of his design, but he is not considered a dinosaur and IMHO his design is exempt from "corrections" to better match our current scientific knowledge and understanding of dinosaurs.

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I interpret that as the complete opposite. Our current understanding of dinosaurs is precisely why it does matter. We now know dinosaurs stood in a horizontal position, which is exactly why I think this fact should be reflected in the new Godzilla design.

If his original design was ONLY based on a mutated (read: bigger) version of a specific dinosaur and that the dinosaur wasn't already fictional (the Rhedosaurus), then I would totally agree with you.