Well the current system is pretty flexible - I haven't seen anyone use it at all in any mission (or heard about it). You should be able to define several gauges, and also do stuff like change the image frame in-mission, change the text, and IIRC even move it around.
I did have some thoughts about making a much more flexible system, but I never got past the "dynamic variables" stage (basically Bobb's expression thing).
Ideally, it'd:
- use the new expression code
- use the new GUI code (So you could interact with the HUD via the mouse, drag stuff around, and use interface objects in it...this would require some reworking of the interface as well, which would help mods use it.)
- Take advantage of the new render-to-target stuff. (So you could render it to a specific texture on a ship, maybe this could even be worked into the materials system somehow with the ability to specify a hud gauge by name in materials.tbl and apply it however you wished.)
- Be much more flexible in general. I'd really, really like to see some sort of scripting system ala Torque. Maybe work it into the SEXP system somehow so that SEXPs would automatically be functions, as well as the expression system. Doing something with the existing TBL format seems very constraining, but I still have my pathological fear/dislike of the SEXP system syntax.

Fixing all the bugs in the current system and maybe reworking the weapons gauge to use the current system would probably be more beneficial in the short run. I'm sure it's riddled with bugs (Besides the aforementioned ones), it's just that nobody uses it enough to figure them out.