I hope it's a retheme with Air renamed and relaunched with the new restaurant. I don't see why they would invest in it without seeing increase in park numbers. I personally hope the ride is rethemed into Phalanx with the entire FV getting a Phalanx style overhaul. This means that Nemesis and N:ST would be able to stay the same. The area could remain the same but make it look like its being shut off from the public and kept secret by Phalanx by including new entrance signs etc.
Getting back to Air. I came up previously with a retheme idea for Air, which after reading the article, would work well with what they are adding.
Air would be rethemed around the baby monster from N:ST. After hatching and causing havoc in its building, it escaped. It was then surrounded in the middle or Air. Rather than restrain it like they did the mother, they are just going to kill it, for the safety of mankind. Air's entrance could be like an army recruitment centre, recruiting people the fight against the monster. The TV screens in the queue would show videos on what they have to do, the risks involved etc, and should give the impression that the riders will die, without overtly saying it. At the station riders are strapped into Phalanx's secret weapon and sent off to kill the monster. The riders queuing for Air shouldn't be able to see into the station. Rather than gates, there would be doors. They would then enter to see an empty train (which has the appearance of blood etc), giving the impression that the previous riders failed to kill the monster and they have died, hence why the coaster carries on fighting the beast, it never wins.
My addition would be that the pre-show (something which I personally think would make all the coasters a better themed, world class attraction - I also think N:ST could be reworked into a pre-show for Nemesis) is a final brief before take off. Air would also need repainting. This along with the (well themed) restaurant could be the relaunch of FV ready for the opening of SW8 which would move away from the Nemesis story and have more of a Phalanx story. (I do love Nemesis' but Phalanx could be extended more)
What ever they do though, I hope it (plus SW8) doesn't ruin FV which is how I feel about The Smiler. If the whole area had been rethemed to tie in more (rather than just a sign which no one will read), it would've worked great.