Today Musar is devoted to being more frum-- religious. That is the exact opposite of what reb Israel had in mind. He saw people that were fanatically religious but lacking severely in between man and his fellow man mitzvahs and wanted to correct that problem.
At any rate I think we can agree to one thing--that Reb Israel thought that learning Musar was the way to go. and I would have to agree. So the question remains for today, is their some way to modify Reb Israel's original idea to in fact bring people to character improvement?
I can imagine that people have thought of this before in in fact people that had academic background in psychology tried to combine Musar with Psychology for this very reason--I suppose]. I went a different path and after accepting that Reb Israel was right in his goals I thought the approach of Rebbi Nachman was closer than Musar to achieving these goals.
Today I would have to admit that Breslov is not really a mechanism for character improvement, though it does achieve other goals that I would consider important. I in fact feel a close affinity to rebbi nachman and his approach. But it does not focus on character improvement.
I am at a point in saying to myself and others that we all just ought to go back to the simple Lithuanian yeshiva model of learning Torah and trying to keep it as simply and plainly as possible and that all the movements made to try and improve on this model just tend to damage it.