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As far as the OP is concerned it didnt take a total eq revamp to redo freepot or nektulas or any of the old school zines eq has recently redone so why would it take a whole new engine to bring certain old zones up to date. Places like the greaterr faydark badly neeed something.
Doing minor graphic revamps like nek, lava, freeport and most of the newer zones would not take a total overhaul. However those updates still aren't anywhere near on par with the more recent games in which the OP made a general comparison.
The old zones that were revamped had a TON of collision problems when they did the revamp because they pushed the graphics on an old engine. Perfect example, TSS. The graphics were decent but they pushed them so far that the majority of people had lag issues because of the graphics. I know several people with fairly up to date machines that couldn't stay in the TSS zones for longer then an hour because their machines would freeze up.
Can they do minor upgrades here and their? Yes.
Can they bring the graphics up to todays standerd? Not without rewriting all the old software.