DHS captures Themed Entertainment from TV, Movies, and Music. They already have many properties that aren't Disney. I see absolutely nothing wrong with this idea. I am a moderate fan of the show (I start watching with the final 12 competitions), and also believe that DHS is fast becoming a park that is no longer relevant. Of all of their parks, DHS must offer up NEW entertainment offerings tied into modern properties, along with CLASSIC stuff. It always makes sense to me that the shows should be tied to new stuff, while the high investment rides are classics that don't easily become stale.
I think that this idea really has potential. People can get a behind the scenes experience with hair and makeup, and the BEST ones get to perform for the masses.
This is also not a small investment attraction. It will have to be heavily staffed, and utilize top notch equipment. Not an E-Ticket for sure, but (maybe) a solid entertainment offering that appeals, not to everyone, but to families looking for a different attraction than the norm.
So even if you don't like the show....give Disney credit for trying something completely different. It's a risk, and it sounds like they are figuring it out as they go along. Kind of exciting really. I didn't think the Monster's Laugh Floor would be very good (And indeed the first version wasn't), but now we see it on every visit, and really enjoy the experience. In fact, it's become a real family favorite.
With the exception of SE, and Stitch, I have been very happy with just about every new offering from Disney over the past few years. I say congrats on having the courage to stretch the envelope a bit, and hopefully we will enjoy it when we go again next year.
And if it stinks, then we can gripe about it after it opens! What the heck were they thinking........!