The original version of this post appeared in 2018...
I think it might be cool to make Ravenloft a little more Gormenghast: the castle is bigger and more dilapidated (visual reference: the castle in The Fearless Vampire Killers) and becomes more central to shrunken Barovia, which is maybe no more than a valley. The castle and environs would be a bit like Dark Shadow's Collinsport. There would be a lot of weird doings in just the house and area. Strahd would be perhaps a bit toned down in villainy, more like early, non-protagonized Barnabas Collins. Strahd should probably have some bickering, eccentric, and likely inbred human family inhabiting the castle as well.
The outside world would exist, but it would be vaguely defined. Barovia would be a hard to get to place, somewhat isolated from the rest of the world. The strange doors of Castle Ravenloft would open onto other Domains of Dread, though.
The play of the Gothic horror, I feel like it would work better with a funnel type situation, where characters of humble backgrounds either work at the castle and discover it's horrors or are visitors to Barovia.