Seems to me that the historical significance of Sleepy Hollow should be part of this discussion. Whether you like template holes or not, Sleepy Hollow represents a huge step in C.B. Macdonald developing his craft.
After Macdonald finished the National Golf Links, he had set a new standard for golf courses in America and abroad. There was nothing else like it. As I see it, National spurred Mackenzie and Ross and Tilly and all the others on to great things.
While Macdonald was developing his style in 1911 at Sleepy Hollow and Piping Rock, the other architects, quite naturally, had to "step up their game" and so they did. Sleepy Hollow was so early in Macdonald's career, it is extremely significant. The fact that he was hired by names such as Rockefeller, Vanderbilt, Choate, Colgate, Macy, Astor, Harriman, etc, etc. to build this course simply adds to the historical importance of the course.
TD, I am surprised that you would suggest that because Tilly added 6 or 7 holes in the back of the property (I think due to a land swap that required the removal of some Macdonald holes) that it might be reason to consider removing what Macdonald built here and convert to a Tilly style. The course has HUGE significance in the history of Macdonald, and his engineer, Seth Raynor. I fail to see any meaningful significance to the Tillinghast holes in the back of the property, which have none of the beautiful views in the front of the property.
As Corey said, Gil Hanse had no other way but to restore the 16th as Macdonald built it, and he did so beautifully. (especially after the club made the decision to go with the Macdonald style...) To think that this hole might be re-constructed based upon what some other people think a short par 3 should look like is ludicrous.
If you read Ran's recent review, you will see a close up picture of the green, and you can see the subtle yet spectacular contours of the green. The trap presents an effect, the green contours make it a fantastic short hole, and the view makes it world class.
Some people may like other architectual styles better than Macdonald's, but there is no escaping the historical significance of this architect, this course, and this hole.
John Cullum's comments reminded me of one of my favorite Abraham Lincoln quotes:
"Better to remain silent and be thought a fool than to speak out and remove all doubt."