There are a lot of carriers who like the PPK but don't trust the lethality of the .380 / 9mm Kurz round. While blowback works for 9mm and even .45 as per Hi-Point using a very large slide, I suspect the reengineering plans for the PPK are one or more of the following:
1. 9mm Parabellum / Luger using recoil operation with a floating barrel instead of continuing the blowback design. Purists may not like it but the younger generation wouldn't care.
2. 9mm Parabellum / Luger in a new blowback design that holds the slide in place just long enough to use 9mm Parabellum / Luger ammunition.
3. 9mm Parabellum / Luger in a new blowback design that sends some of the excess gas forward to allow use of a slide similar to the current one.
They are going to have to compete with so many new single stack 9mm and 380s.
Option 2 has been done in the H&K P7, but my guess is will be tricky to keep the dimensions similar.