MK's MSEP is a mess in its current condition, it definitely shouldn't continue to be run in such a state without either a massive upgrade or replacement in the plans for the very near future. That being said however, I don't care for Paint the Night much. It's short, some of the float designs aren't great and the music is obnoxious (not even memorable or endearingly annoying like MSEP's music). I also think the LED tech went a bit to waste here. I was excited about it given that the Asian parks usually do a fantastic job, but it ended up being a disappointment. The one thing I think it nails are the costumes. Otherwise however I found it to be a very meh night parade and a waste of LED technology. While Magic Kingdom's parade is unquestionably in bad shape and in need of either a massive upgrade or replacement, I actually do still enjoy it more than Paint the Night. Don't get me wrong, i'm definitely NOT proposing we keep MSEP as-is and ignore its ever increasing problems. But I am saying that I would not be satisfied with a Paint the Night clone as a suitable replacement.
A FAR better implementation of the new lighting is Dreamlights at Tokyo Disneyland. Besides the inherently better float design, many older and newer floats have been updated to new programmable LED lighting tech. Particular examples being the floats based off Aladdin and Alice in Wonderland. Incidentally, Dreamlights is also the perfect example of how to upgrade a classic attraction without it getting stale and outdated. I'm not much of a fan of the MSEP soundtrack, but Dreamlights even makes improvements there (though my heart will ALWAYS be with Spectromagic's gorgeous score). Dreamlights appeases nostalgia and people who want something fresh. I'd be in absolute favor of a Spectromagic rebuild (mixture of old and new floats and the original soundtrack) with the Dreamlights LED tech involved. Fantillusion as well.
I'm not proposing cloning it (because i'd rather the parks be unique and different from one another as they used to be), but Dreamlights IMHO is basically the model of EXECUTION for what all other night parades should strive to be. The other unique parades should take note and follow how it has continually improved and upgraded itself over the years.