You can leave the pages named as .htm and have them parsed as PHP if you wish. It does load the server up a bit; but might still be OK if your traffic isn't high.
Alternatively, you can use ModRewrite to dynamically rename/access the new pages using the old names.
Both of these methods preserve your incoming links, pagerank, search engine indexing, and visitors bookmarks.
A complete redesign of page names and folder structure destroys all of that, but make it easier to go forward unconstrained by lecagy code and conventions.
Your call.
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