I don't have experience with Bulbo. phalaenopsis specifically, but I do grow several other Bulbo species and hybrids. I grow most of mine in vanda baskets with fine bark (a Paph mix) mixed with sphagnum and then a layer of sphag on top, though I know many Bulbo growers use just sphag (some of mine are potted in just sphag, one in just bark, they all seem happy as long as I water enough).
I agree with others that repotting now will be fine. It would be good to get it into something larger now so those new growths can root into the medium since they tend to ramble and can extend over the sides of their pots pretty quickly! I think you could pull off some of the old sphag if you want, but I don't think it is necessary to try and remove it all unless it's completely broken down. I have not found my Bulbos to take repotting too badly so I do not think you need to worry to much about "messing it up"! That said, they also don't need to be repotted often once they get established in a good sized pot/basket.
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