As former member of BHG 22nd, I can confirm that Serpent is/was good only to gank people w/o having any "y u no fair" issues. It was a big fail ship. One day 4-5 of us killed bunch of ppl in NY and even one experienced cruiser pilot, next day one Titan killed all 6 us, pair by pair.
I vote yes for new model as it's size fits LF range, but it would need new name too, something funny, like Tadpole. And Sea Serpent should stay as it is (for the old days sake), just give it more armor to compensate for the size. Having two usable BHG LFs can't hurt, imho.