I would say just the opposite; Khao San road needs to focus on backpackers, booze AND add hot babes to the mix.
Khao San road held an enviable position in SE Asia for decades as the, or at minimum one of the, main places to stop in at. Literally generations of travelers stayed there, spent a night there, met up with friends new and old there, and used it as the starting point of discovering Thailand. It is one of the primary reasons that so very many people, including pretty much everyone reading this, has kept returning and returning to Thailand.
Reinvent itself? When you have a golden goose who helps fund your tourism business for decades, perhaps 're-inventing' isn't the way to go.
The biggest danger to Khao San Road is if some moronic General decides that it needs to be re-invented with the look of an old Army base, but without the charm, ambiance and/or 'hipness'.
Anyone who ever served in the Thai military should be prohibited from approaching within 500 yards of the place.
There's a few things to note when reading this article. Firstly, Thailand isn't know as the Land of Smiles for nothing! Have you ever seen so many people with braces on their teeth? All trying to create the perfect smile! Second, take a look at the premises of the dentists....palatial! Built on the money of people, seeking the perfect smile. Thirdly, this has gone beyond dental health. It's now in the realm of cosmetic surgery...not dentistry....