Not saying it's not funny, but there is definitely stuff in the show that wouldn't fly today. For example there is an episode where George didn't know black people ate salad.
I am reminded of Sokka's character in the new version of the Avatar (show) compared to the original animated one. In the original animated one, he portrays sexism and very much feels the consequences of it, and grows as a character when overcoming it (through warranted humiliation). The new show never included any of this and so his character lacks all of this. It's like the writers think they're endorsing his sexism if they ever included such a thing.
I don't think they are afraid of it, I think they just wanted to portray a more serious character overall. Live action lens itself to that serious tone, where It would be hard to replicate some of the slapstick gags in the anime and trying would fall flat.
He is also based on Larry David himself, and many of the most outrageous stunts he does in Seinfeld, David has done in real life. For example, George quitting his job just to regret it immediately and going back the next day as if nothing had happened, is based on Larry David doing exactly that as a writer on SNL. He made a big scene and quit, and just went back after the weekend and pretended like he'd been joking. Larry David is an interesting man to say the least.
I heard on a podcast today that Larry David based the George character on himself. (The podcast is called Good Bad Billionaire, where a couple of people judge various billionaires on their ethics etc. TIL Jerry Seinfeld is a billionaire.)