Yeah Splash has been in horrible shape for several years now. The last extensive closure it received was early last year and it wasn't to address any of the serious show issues that have been present for years now. The only reason the ride was closed was to install lap bars on the logs ala Tokyo Disneyland. Nothing else was really fixed sadly and that precious downtime was completely squandered. A few months ago the lack of maintenance really took its toll and the entire Riverboat scene broke completely during regular show hours to such an extent that even casual park goers didn't notice. This was addressed soon after, but a multitude of figures all throughout the ride still either don't move or only partially move. From the second drop beyond the ride is a complete mess, especially the Laughing Place.
Splash is going to need an extensive amount of closure time very soon, probably even notably longer than Big Thunder had to fix all the problems it has (Splash has tons of animatronics and water features that need fixing). One hopes that this will come very soon with Big Thunder now freshened up somewhat and part of New Fantasyland opening this holiday. If not then we're looking at yet another disappointing year of a Splash Mountain on life support.
Few people think it should be rethemed. Besides Tokyo's, WDW's is the best version of the ride when it's in 100% working order. It should just be kept in proper working order, something that it hasn't been for the last several years. They failed to address the broken show elements last time it went down for rehab.