The existing alignment could likely be utilized as an urban freeway, but the flyovers need to be completely reconstructed to at least have 2 lanes each way, and ideally have continuity and a 55 mph design.
The rest of the bypass could be reconstructed to have an urban 2x2 or 3x3 with full control of access and a 65-70 mph design.
The northern end of the bypass is done better, even with the “exit” situation for northbound.
Given the bypass has at least access control for most parts, and particularly the southern substandard section in question, it’s reasonable to evaluate upgrading that to modern standards and even 6 lanes if needed and retain the urban freeway with easy access to a number of businesses, stores, hotels, restaurants, etc. via interchanges.
Not sure if an outer bypass is fully warranted, unless volumes are high enough it’s desired to avoid an urban situation altogether.