Yes, Camelot deserves a remake. Use actors who can sing this time.I think it's a foolhardy notion whether they do it in period, update it for present day, or let the Sharks speak and sing in Spanish.
If you want to remake a classic film musical, remake one that wasn't done very well the first time around: Porgy and Bess or Camelot or do the musical version of Irma La Douce or Fanny.
His name is Bruce.I think Spielberg should do a remake of South Pacific and have Jaws do a cameo in the film.