Functionally, every link red or blue should remain exactly as is. Technically, every blue link refers to one article and every article SHOULD have an item at Wikidata. Every link, blue or red, may be referred to from many places and SHOULD be about only one concept. For every destination there MAY be a link to an item at Wikidata. At this time we have no way of knowing if there is only one concept and if there is an item at Wikidata for that concept.
Many years ago Wikidata solved a similar problem. Wikidata was an instant success because it replaced the interwiki functionality. The solution proposed today is similar and only possible now that Wikidata can be "federated" with many instances of a Wikibase.
All destinations for both red and blue links will be known in a local Wikibase federated with Wikidata. Any destination may be linked to a Wikidata item but the name of the local article/destination will remain unique. Thanks to this federation, disambiguation support may be provided based on what is known both locally and globally when a new link is created. It will know about the synonymy for each subject.
This change does not need to be controversial because like with the interwiki links, people can opt out of this new functionality. When only a subset of the editor community becomes involved, the quality of all links will improve quickly. With the interwiki links fixed, Wikidata was ready to become a knowledge base. As the wiki links in the local Wikibases get in shape, the Wikidata knowledge base may be used to signal that articles should be in specific categories, or that red links could be added in summation articles like in articles about an award.
Our dependence on Wikipedia editors will remain key but tools like the Wikidata knowledge base are available to bring us the data that enables us with information that is up to date and improves the connections between all our articles. Manually checking wiki links is a Sisyphean task, with tooling it becomes manageable and worthwhile.
Thanks,
GerardM


