I like the ride and wouldn't want to see it lost but it's about 30 years late for a massive overhaul to bring it up to date with modern standards of these kinds of rides. Hell i'd argue even longer outdated than that, I feel it's lacking even for 1970's tech. MK's version should have been upgraded alongside the Disneyland Fantasyland makeover of 1983, or at least around the same time. Anyone who has ridden the Disneyland or Disneyland Paris version of the ride will know what I mean by that. On top of that, rumors are that along with Alice's current major refurbishment, DL's other Fantasyland rides including Peter Pan will be getting even further tech upgrades over their 80s overhaul for the 60th anniversary (the queen in Alice is rumored to be getting a new animatronic similar to the ones in the Dwarf Mine Train so the other DL Fantasyland rides may also be getting similar upgrades). High time the Magic Kingdom version got some attention like that. Sadly that is unlikely given that they've no real reason to do anything of the sort, but it definitely needs it no matter how popular it is.
Again I think the ride has its charms and all, but its age has become an incredibly difficult to ignore distraction that needs major addressing (that distraction is only going to compound exponentially the longer it's allowed to remain as-is in the future). MK's version of the ride needs to be brought up to par at LEAST with CA's and Paris' version if not well past them. Or better yet- up to the standards set by ET (Universal) and beyond. They could make this one hell of a great ride if they put the money, time and effort into a proper overhaul and got the right people involved.
Supposedly Shanghai Disneyland is going to be getting Peter Pan's Flight from leaked lists of rides online. I'm interested to know what it's going to be like. Whether it's going to be something derived from one of the other Disney parks using older tech, or whether they're going to take the opportunity to upgrade it to something newer and better.