I'm in favor of this. It would probably be a while before a meaty update, but rats nest of code can become a Gordian knot whose only option is to cut it apart.
it's counter productive since it would take a massive amount of energy redoing game, then things would quickly turn messy again. It's multiple hobbyist working on the same project with no guidelines, mess is unavoidable. Also the recent code really isn't any cleaner than old one from what I saw. The main problem right now is simply not knowing which parts of the code are needed and which are trash, aswell as not knowing which part does what.
I'd suggest making a walkthrou file which documents all progression and scenes, then using it as documentation for figuring out which event does what in the code. Rpgmaker doesn't support official docs so this would be the most straightforward solution. Once it's clear exacly how the game is
supposed to work it becomes much easier to clean it up and change things.
The only advanced problems I saw are random fps drops and phone not working. Everything else is surface level bugs appearing due to people not actually testing what they wrote, and copy/pasting like a motherfucker. They can be fixed easily. The giant pile of variables and switches is a problem and RPGmaker doesn't support fixing it, but that's a problem from original game. again, it's more efficient to keep track of variables in seperate file with explanations, grouped by character, instead of redoing all of them without a system.
RPGmaker insistence on limiting the developer is a curse but it really stopped the issues from truly layering on top of each other in this case.