Maybe they can rebuild "better", whatever that means. But historic Lahaina Town can never be rebuilt to be what it was. That is what is so tragic.
Tragic is the loss of life.
Lahaina SHOULDN'T be put back to what it was. It wasn't a real, working, thriving town. It was a caricature of a Hawaiian seaport, before mass tourism. It is no more Hawaii than the Magic Kingdom is Florida.
The first question about how this will shake out is: How much of that town is fee-simple real estate? Because anything which isn't is controlled by the Bishop trust. They will decide what to build, without much (if any) public input. Only 10% of Hawaiian land is fee simple. However, most of the fee-simple real estate tends to be clustered together in giant wedges -- because that's how the original royal land grants worked. I live on such a wedge. Maybe Lahaina is such a place. Maybe not. Maui was never in contention for our retirement, so I haven't investigated real estate there.
Last time I visited, I was struck by how almost none of the commercial areas had anything at all for locals. And what little there was, drug stores and similar, clearly served tourists first, locals second. It is the same as Duval Street in Key West -- all commerce, all tourists, all the time.
It would solve a great many problems if Lahaina was built as a model for a sustainable Hawaii -- shops on the first floor. Residential on floors 2 and 3. And loads of medical offices, hardware stores, grocery stores and similar -- a town built for residents, which tourists may wish to visit.