Any film, no matter the age, will look improved on Blu-Ray as long as there are good quality 35mm elements to work from.
However, given that the market for Blu-Ray is very small (and virtually non-existent for catalog titles) and that regular DVD is not going anywhere I would put the chances of Chan on Blu-Ray anytime soon as between slim and none.
Actually as with videotape, DVD images will only be as good as the source. Blu-Ray will look just as the present DVDs . The only difference will be the ability to play on a Blu-Ray player.
