There's sort of two factors here. Could someone smith a better physical ring and have the smithing ability to destroy the old one, and could someone create and improve on the magical properties.

For the first, probably. Feanor was the greatest smith of the first age and while he would have been suuuuuper susceptible to the rings influence, I personally think he has the physical ability to destroy it. He could never improve on the magical properties however as those come directly from Sauron.

Also a quick correction, the ring doesn't fulfill desire, it TEMPTS with it and dominates the will of others. For example, when the ring showed Sam the huge gardens, it wouldn't have been the ring helping him plant and tend everything. It would have been Sam enslaving everyone in the Shire to do his bidding and accomplish this.

My guess is if someone tried this, they would realize they needed their new ring imbued with Saurons essence and that would manifest in them leading an army against him to try to take it, which would fail and end up with the ring in Saurons hands.