Upgrading the existing highway along the lines of the Access Management Project of about 15 years ago, I think is the best way to handle this highway. Consolidation of driveways where feasible, building J-cut intersections where feasible, building interchanges at selected strategic intersections, build the two bypass extensions, roadway segments less than 24 feet widened to 24 feet, build 10 foot paved right shoulders where not already in place, build 4 foot left shoulders where not already in place, build sufficient length right-turn and left-turn lanes, urban undivided 4-lane sections widened to 5 lanes with center lane for left-turn only, build median barriers in narrow medians, purchase limited access controls on pre-existing bypasses as they were built without that, add signal synchronization and loop-activated signals where feasible if not already in place. That project was estimated at about $200 million for the 65 miles back then.
I've taken a good look through that study, and that's honestly the next best approach to a freeway IMHO. Limiting the access on the entire corridor, constructing frontage roads in certain areas, widening the median to 50 feet where it's currently smaller than 30 feet, and constructing about 10 miles of new location, limited-access at-grade bypasses.
The only issue is the cost estimates in 2019 dollars. The entire corridor would cost about $200 million per the estimates, and looking at the cost breakdown, that would be way higher today.
For instance, a Temperanceville / Oak Hall bypass would cost $25 - $29 million. For converting to 2019 dollars, as an estimate, using a number of $20 million per mile, it would cost between $100 and $120 million (assumes $20 million for a VA-175 interchange in the higher number)
Another bypass, a 4 mile Nelsonia / Mappsville bypass would cost $16.6 million back then. Again, with $20 million per mile, likely $80 million or so now.
I'm less familiar with how the costs would translate for relocating one roadway to provide a consistent 50 foot median where no full new location is proposed, but I'd assume that number would also rise.
So total, likely $200 million for the bypasses, and probably another $100 - 150 million for the other improvements.
If it could be funded, I'd say go for it. It sounds like a great improvement, and in the long-term if a freeway was ever desired, which it's currently not, improvements done in this project would accommodate further upgrades.