It might be doable, but I don't think it would be worth it to tear down the stadium for a new one that would only be a modest improvement. Go big or go home. At the least, we'd want a new stadium with 5-10k more seats, better boxes, more concessions and bathrooms, and significantly improved concourses.
I think the biggest draw of rebuilding on-site is that the stadium will remain on campus. That doesn't outweigh the limitations, though.
As an aside, the most important feature I'd want incorporated into a new stadium would be some kind of configuration that makes the basketball atmosphere more intimate, while still being able to hold 30k+. Moveable bleachers that could surround the court and create something like an arena inside and arena, would be sweet.