After the trials against the Mi-28A conducted by the Soviet military in the late 1980s, it was decided the Ka-50 was the better helicopter, not only in terms of specific capabilities, but also as a general platform for developing future combat helicopter operations. Relative to the time and other hardware in service, the Ka-50 was pushing the envelope in many ways. The Soviet military chose the Ka-50 for service, but instructed Kamov to address a number of shortcomings of the test prototypes. These included enhanced night combat capability, defense systems capability, interoperability with ground forces and reduced pilot workload.
Presumably, at least some of these improvements would be forthcoming as Kamov continued to develop the aircraft. As it was however, the USSR fell and the initial production batch became the only and final production batch, more or less in the form presented in DCS: Black Shark. It's also the form in which the Ka-50 took part in actual combat operations over Chechnya.
It's known that Kamov continued to experiment with various IIR systems and, more recently, with missile warning and jamming systems. As far as I know, no RWR was ever tested on the aircraft. But then again, RWR don't appear to be standard on any Russian combat helicopter. Some, only some Mi-24s were equipped with them.
Today, Russia appears to be decided to keep in service the few Ka-50s built in the original production batch and adopt the few that were not completed. It's possible some avionics retrofit will be conducted on these, most likely to include the missile warning systems and possibly jamming systems. I would be surprised if there was any retrofit of the attack systems.
The Ka-50 "legacy" can only continue with the Ka-52, a helicopter much more fit to todya's standards, with IIR sensor(s), glass cockpit design, possibly a multimode radar. However, the Ka-52 is still raw, despite being officially adopted into Russian military service. In today's Russia, being in "mass production" usually refers to equipping 2-4 squadrons. At least, this is the case with the Su-27SM and the "mass production" Mi-28N.
As I've said many times on this forum, the Ka-50 can only be understood in relation to the overall economic and political collapse of a nation. It, like most other Russian military hardware, was and for the most part still is in freeze-form for almost 20 years.
Sorry for the rant.