If they keep this tongue in cheek it will be fine. Just kind of funny and memey instead of serious.
I mean a LOT has happened since Karate Kid came out. (Fuck, I feel old, I remember seeing it for the first time in school as like a 2nd or 3rd grader, at a school that's no longer a school since the building was closed and later re-purposed.)
If we're talking just the martial arts world, tournaments like in the movie used to be a huge thing back in the early 80s, but that pretty much went away in the 90s, what with the advent of MMA, UFC, and Gracie's BJJ. Straight vanilla karate is basically a joke in Martial Arts circles from a pure combat perspective now. Not to mention, if we're talking action movies, Karate Kid is before shit like Van Damme and Seagal came along, upping the action ante. Then more recently, shit like Tony Jaa and The Raid movies upped the action/martial arts movie ante into the stratosphere, making anything else seem tame by comparison.
If we're talking culturally, it's amazing how the Cobra Kai were asshole bullies back then, but the modern USA is BEGGING for an injection of asshole behavior, and I'm actively rooting for Billy Zabka in that trailer over Car salesman LaRusso. Hell, if they'd just left out Daniel-san, and made it about how the world is finally ripe for Mr. Lawrence to make the Cobra Kai take off, not as a martial arts school per se, but a counter-cultural way of living that has been forgotten (and btw will get you tons of pussy, lol) it'd be far more interesting IMO. I can't help but be afraid they'll ruin this aspect of it somehow.