Fender would only Reissue the Jag-Stang if the demand were high enough. I'm not so sure right now, on one hand the prices ARE going up and the numbers I see for sale on E-bay and abroad are getting smaller, but on the other, many people complain about the bridge, trem, tuners, wiring, pickups, lack of contours, and how it does not look like some of Kurt's journal drawings.
To add to it, given all the animosity over capitalizing on Kurt with shoes and stuff, and the negative reactions to that, the Jag-Stang might not get reissued. There's this split between the anti-establishment people who are hardcore into Kurt's life philosophies and the general anti-commercialism mindset of Alternative musicians and such and see of signature guitars as some silly thing Kurt would not want or some dumb commercial trendy thing and therefore they would not want to see it back, but then there's the adolescent/teen crowd just discovering Nirvana and know not of the whole Kurt philosophy and Alt-Rock mindset towards sig model and just want a cool guitar like Kurt's. Then there's those like me who like the Jag-Stang as it is and think they are a good guitar regardless of weather Kurt Cobain designed it or not.
As for me, I could have a field day with ideas for Jag-Stang related guitars all day.