I play banjo, among other things, and I use one of the much-maligned piezo pickups. I play an open-backed 5-string and I like the way the piezo sounds, but open backs aren't nearly as loud or piercing as resonator (bluegrass) banjos. I'm guessing that your dad plays bluegrass?
I got the cheapest store-bought piezo pickup I could find ($25), and that's only because at the time I didn't know I could rip open one of those annoying musical greeting cards and make one out of the piezo element inside those things! I stuck the element under the foot of the bridge and it seems to work pretty well. I'm playing sort of non-banjo music with it (for an example of the music, with banjo, you can listen to the song on http://music.myspace.com/magovistamusic ). I'm not trying for a "sweet and pure" sound obviously. The song on the MySpace page has three tracks of banjo, one direct, and two through an old Princeton and it's purposely hot sounding. The thing I like about the piezo pickup - that your dad probably hates - is that I can get AWESOME, and pretty controllable, feedback with it. Way more controllable than with an electric guitar.
I also play upright bass and I have two basses with Gage Realist pickups on them. They're fantastic piezo pickups developed by David Gage and Ned Steinberg, that are fitted under the bridge foot. The piezo element is sandwiched between two layers of copper foil. No noise, no interference problems, and plenty of output. Some people use them with a preamp (I don't), but they're designed not to need one. Gage has started making them for violin and mandolin, and I wouldn't be surprised if the violin one works pretty well for banjo. However, for your dad, it's probably about the most expensive option of the lot - $180. I don't know what kind of piezo element is in the Gage pickups, but maybe you could play around with some elements and copper foil to see if you can make one that sounds better than what he's got now. Piezo elements cost almost nothing - could be a fun experiment.
There's another bass pickup called the Revolution Solo that has been getting rave reviews. It has a piezo element embedded (or sandwiched or something) in sprucewood and fitted in the wings of the bridge. Something similar could be done for a banjo bridge maybe.