I saw a production a few weeks ago at the Asolo Theatre in Sarasota. I had to be dragged since I had never seen a good live production. I felt that I had the movie...
The Asolo production was as close as SOM will ever get to a justifiable modernization, I suspect, and I thought it was great. Any scenes with Nazis were just darker and more ominous than I had expected, particularly the scene at the festival. Also, the very end is the only convincing one I have ever seen vis-a-vis escaping through the Alps.
So, yes, it can be darker, more ominous where it is appropriate, and it can maker it feel less stage-bound; but it still is The Sound of Music...not sure you can do much re-thinking of Do-Re-Mi, My Favorite Things, The Lonely Goatherd, the title song, or How Do you love A Problem Like Maria. (Cut some of the cute songs out and reset the show to take place in a concentration camp, where we learn that that their escape was unsuccessful).