While I want to think of simpler ideas that just try to improve the movie as-is without major restructuring, I think I would still like to experiment with a major overhaul and then compare the two versions.
Without getting into it, the project I’ve thought about doing is a Revenge of the Jedi edit using Puggo Grande or 35mm Grindhouse as the base source. Any edits or vfx would feel period-accurate, and not CGI. I like the idea of it being a “lost workprint” or a film reel that somehow was brought over from an alternate history where ROTJ matured with its audience a little more. It would use some ideas like Luke having a blue saber, Luke and Leia not being siblings, etc. I feel like a heavy restructuring of the film would be appropriate for an edit like this. It wouldn’t try to be “better” than what we got, just different.
You might wanna be careful with turning Luke’s lightsaber blue! The reason the lightsaber was turned to green in the first place was because it blended in with Tattooine, making it hard for the audience to see. You can see the problem in this 16mm teaser trailer: