Interesting thoughts about the mighty "Tin Triangle". BUT, as a previous Eng Off (loved every minute) on the mighty Vulcan IMHO it would have taken a MASSIVE (and thus politically unlikely) investment to have completely re-worked the airframe. It would have been more cost effective to have started again. The electrics and mechanicals were first generation and what was so amazing about the aircraft was the expertise and often inginuity of the guys (no gels then) who flew it.
As was said above, what role is there for the aircraft? The matelots have the nuclear deterrent and we now have the splendid (but what is it for apart from swanking about at airshows?) Typhoon.
Probably get a sqn of Vulcan Mk 3s for 2 Typhoons!
Long Live XH558 - get back in the sky where you belong!