It's not really about changing the Indian Act, but about providing a level of jurisdiction that is appropriate to the nature of supporting government functions for first nations.
As to what we see and where things have been successful, Tsawwassen was mentioned. It is a self-government agreement, so it's outside the Indian Act now. However, for even those that are ostensibly under the Indian Act, there are pieces of legislation that Canada has developed, whether it's the First Nations Land Management Act or the First Nations Fiscal Management Act, that provide a jurisdictional and institutional framework for first nations to exercise that jurisdiction.
The current land tenure regime under the Indian Act isn't adequate. You would probably have to create a different piece of legislation that affords that jurisdiction to manage the land the way other levels of government would in Canada.