As you have already found out, your workflow as currently implemented won't work. If the updates were not very common, you could try truncating the table (instead of deleting it) and using a cursor to repopulate it, but I don't think that will work in this case since you are doing frequent updates.
Is the data completely changing in 24 hours? What percentage of the table is actually getting updates in a day? I ask because the general approach you are trying is inefficient if a small percentage of the records get updated in a day. If there are a large number of updates in a day, then I recommend deleting the table (using ArcGIS because the SDE system tables will get cleaned up) and then re-register the table after it is created again.