Okay, so I am actually pretty happy with this outcome (to a degree, more on that in a minute):
1. It's a net increase in attractions with the door coaster being a straight up addition (built on current parking) and a comparable show replacing MV3D in that building
2. Muppets are retained in the parks. Maybe not the ideal situation - I agree with the height restriction/intensity issue - but actually a decent theme for them
2a. The location does dovetail very well into replacing the future Villains show (once Villains land opens) with MV3D in the future and having that whole area be a Muppets theme. Or at least a similar theater Muppets show
2b. Also, there's possible space that if they wanted, they could try to do some sort of Muppets dark ride around RNR. I'd love for them to consider it
3. No immediate plans for Muppets to go to HoP which is great! Sorry, not sorry, but I'd rather keep HoP than MV3D given the option between the two
Now the downside....
1. My biggest issue is the timing. These plans are actually totally fine, but it will mean that both MV3D and RNR will go down before new stuff opens so DHS is going to have a capacity hit which it really cannot afford. The park is a slog to tour because of not enough stuff. IMHO, they should have knocked down Launch Bay and the backstage stuff there and build a new land with multiple rides first and when that was open, then worked on Monsters Inc/Muppets/RNR.
2. I really wanted to see Launch Bay and the old animation building torn down so we could get movement in that area. IMHO my biggest fear is that the idiots in charge end up saying things are "Good enough" and not address that area in the near to mod future when that is really the location where DHS needs expansion. It's like a decade overdue to have something substantial happen there. I don't care what it is, but they need to build something in that footprint ASAP for more attraction capacity and connect it to the RNR area for better guest flow.