IMO they should just end the Foundation. It seems that they have very little money left and their reputation is (justifiably or not) trashed. Why even go to the trouble of rebuilding it?
They accomplished quite a bit over the years. They paid Gavin and several other developers, they funded bitcoin.org, they produced some good lobbying results, etc. The people who worked toward these good results shouldn't feel ashamed to "call it a day" now. I was an annual member for the first two years of the Foundation (currently I'm not a member), and I'm not particularly disappointed in how my money was apparently used.
This was previously known and suggested. The Foundation won't do good in the future.
The question is who is going to fund the developers now? If we find a solution to that, the foundation can safely disband. It has done good in the past, but there was a lot of drama and such.