I would leave the rootball alone if not rotting roots- if the root ball is dense, sounds like a happy palm... just put in larger pot with somewhat better soil- the roots will eventually grow into the new soil... but for most palms, water retentive soil is not so bad. I think I have more trouble watering my palms too little than too much (less of a problem with indoor palms than the outdoor ones in pots, which are nearly impossible to overwater).