I never really liked Laughing Jack as a creepypasta itself, because it just felt... over-the-top, if that makes sense. But I did (mostly) like the character himself (design-wise, lacking in the creepy department, but a good kernel, in Linux terms.)
I have found a way to improve his whole schtick, and that is an irrational fear of mine. Birds, or more specifically, ratites (big birds).
Imagine this, your child comes into your room last night and says they can't sleep because of "Jaques keeping them awake." (yes, I renamed him too, Jaques fits better to me)
You go in there, and there's this very tall, human-faced bird-man in their room, wings folded to his back, talons ripping out of a pair of gloves. He has teeth, he has a beak (more like a long, pointed keratin formation around his nose), and he's a freak. At least he's not living in your walls and calling you a fat-headed gnome, though.
Immediately, he approaches you, and you back away. You rush towards the bedroom door, but your child holds it shut with all their might. They were in on it. Your fate is sealed. Jaques is an "extra clever jackdaw", worming his way into the mind of any child, or adult, for that matter.
Plus, LJ just looks like a bird, with that nose and that hair. And his creator is a terrible person, from what I've heard, so the character potential deserves better.