Can old camcorder be optimized?
TL;DR: Probably not.


I believe your camera records video on MiniDV. Video is written digitally but writing process is the only non-digital operation in the camera (involves magnetic head, tape, and tape scrolling mechanism). It's easy to determine if something is really become worn out because usually something mechanical is the only thing that can gradually degrade. If you observe too many digital artifacts in your fresh recordings (make sure it's not because of old MiniDVs) you can try to clean the head (google 'tape head cleaning'). If it doesn't help then almost certainly something is wrong with the head/scrolling.
Water or steam can get into your camera, condense there, and make the image slightly blurred (I had such an issue with my Sony camera that is similar to yours). If you are not 100 % sure that the image was less blurred earlier skip this point.


In both cases I don't recommend you to try opening/repairing the camera by yourself. Go to the official service. This brings us to the price of repair which is probably comparable to the camera's cost for such an old device. That's why I recommend you to invest the money in a new camera (progressive video, no need to buy tapes, less requirements for light and so on) or stick with existing issues. So the answer is probably not.