We DO need a remake because...
People need something to believe in. Just as the character in the end was asked if he believed Conway's story replied, "I believe it... because I want to."
Personally I do not think there is any harm in having a little change in the world. I am tired of all the zombie, vampire, end-of-the-world scenerios where there is no redeeming quality of man to hope for; just kill or be killed, cheat, lie, steal, adultry, sick humor, etc.
I read the book and have seen the movie many times. It never fails to uplift me and spawn a desire for a better world. To see the possibility of mankind in a harmonious relationship with his fellow man and surroundings is a thing of wonder.
Conway was a world weary hero of the people who wanted to change the world but didn't know how. Finding Shangri La was something beyond belief, even as he was experiencing it. To think that one simple rule, "To be kind" was the moral fabric binding those people together is inspiring. What possibly could be wrong with a movie that does that?
It was reported that FDR loved this film. I think if it were done properly, even as a work of fiction, it could be a great achievement. To inspire hope for a better world, Lost Horizon could make believers out of a whole new generation.
Even if no remake is made, 75 years after the original the story is nothing less than beautiful.
Everyone should see it.