I don't know what DC should do with the character as is, but I do know as a fan, that if it were up to me I'd just reboot the character. If it were up to me I'd reboot him back to the way Ditko intended. Ted Kord is supposed to be a cross between Peter Parker and Tony Stark. So the first thing I would do is make him just a little older than the Ultimate Spider-Man Peter Parker is right now (so I'd make Blue Beetle about 19 or 20). The second thing I'd do is make him a technical genius (a young prodigy if you will) that cares about science more than one day taking over control of Kord Industries and following in his late parent's footsteps. He'd have a problem dealing with responsibility. Lastly I'd have most of that change when he finds out that his Uncle (and proprietor of Kord Industries, until young Ted is ready to take over) Dan Garrett is really the Silver Age hero known as The Blue Beetle and is put in a position where he has to save his life.
From there the origin would most likely remain the same. Ted wouldn't be able to save his Uncle Dan (and the source of Dan's power, The Blue Scarab) but would none the less carry on his legacy as the second Blue Beetle.
So basically, I'd make him more relatable to teens, (a Ditko trademark) and DC's version of a young Spider-Man/Iron Man.
