I still really don't think it will hurt Disney. I think it will convince more people to come to Orlando, and certainly Universal, but people skipping Disney all together is such a slim number it won't hurt any kind of bottom line. To think that Disney will fall down into a Shatner-esque collapse is way too foolhardy. Honestly Disney knows this is a gigantic boon for Tourism here, but it ain't a risk to them other than obviously losing the showmanship points for the year. They've been showed up, but frankly they know it won't hurt where it counts to them these days: The wallet.
WDW will keep the bottom line in tow, then in 2011-12 when people stop coming to Florida just for Harry Potter, they'll turn on the "Good Show" facet again for Fantasyland and Star Tours. It's a shady move, but it's a smart one.
(But for us purist fans, we don't want them to be cunning and evil, we want them to deliver a great show, which is what Universal is doing.)
As for the Queue, I welcome it to the League of Gentlemanly Queues. Indiana Jones, Expedition Everest, Revenge of the Mummy, Men In Black, Tower of Terror, and now Forbidden Journey will team up and be awesome and classy. Together, they solve Attraction Murders!