I think it's a disservice both to the Dhamma and to practitioners to crticize attempts at modernization as a "watering down" of the teaching or creating a "hodge podge" or similar sentiments.
Like every living religious tradition, Theravada must constantly adapt or die. This is the nature of the religion business, and every society, culture, and generation will adapt the religion to their own needs. This is nothing new. Thai monks give away lucky amulets and winning lottery numbers, things I'm fairly certain the historical Buddha would frown upon, but because it happens in Thailand and it's acceptable to the orthodox Theravada community. Meanwhile if, say, a western monk begins ordaining nuns again a schism erupts and people begin crying heresy. The Brahma Viharas are loving kindness, compassion, wisdom, equanimity, and empathic joy, yet people get hung up on who isn't wearing the right clothes and who isn't pointing their feet the right way and *gasp* who is doing a practice applicable to 21st century life instead of attempting and failing to do it the way they did 2,500 years ago. I'd say the whole loving each other and being happy thing may be a little more important than sticking rigidly to the way it's always been done when historical evidence again and again shows that our conception of the way it was always done is not as clear as had previously been thought
When the Lord Buddha saw Sigalaka worshipping the six directions, he didn't reprimand him or teach him pure Dhamma, he provded a Buddhist frame for Sigalaska to continue his practice. No "watering down", no "muddying", no fear that foreign practices would pollute his pure practice, but accomadating and adapting instead of excluding and isolating. Even in traditional Theravadin countries, animistic and shamanistic practices were integrated into the Dhamma instead of being thought of as impure influences.
Every religion must make a decision: does it want to remain the same or does it want to remain alive? Due to the wider access to knowledge through technology and modern society, people are no longer willing to accept answers based on authority or tradition (something else the spoke on I think). So no, modern Theravada is not an oxymoron, it's simply the tradition and its adherents evolving together as has been the case throughout the history of humanity. Sorry for the