The loop will not be removed. No one alive today is offended by it.
Right now they are discussing placing a cap on a section of I-40 west of the loop in the vicinity of Dr DB Todd Jr Blvd. in order to reconnect a neighborhood with the Jefferson St corridor. I’m thinking this will happen, as there doesn’t seem to be any opposition, and the funds will be made available.
As for fixing the loop, I have often thought it should be turned into a giant roundabout, with all lanes going counter-clockwise. It might make getting through town on I-40 longer, but that’s why I-440 exists.