Fantasyland Theater?
Finally this huge amount of land was acknowledged, 7 pages later. Why remove any dark rides or Casey Jr/Storybookland when you have a theater right next door that has more square footage, and underutilized at that, than either of these spaces? The entire parade corridor at matterhorn mall is in need of a refresh. I expect any major fantasyland changes to take place over there (motorboat cruise/north tomorrowland, fantasyland theater, toontown.
I look at the size of that site and I see no reason why they couldn't add the beauty and the beast ride exclusively in the fantasyland theater space without having this project affect toontown at all. Any changes to toontown could come from other projects. This would also have the benefit of not requiring any level changes for the purpose of connecting the two properties on other sides of the railroad track.
Separating projects based on the property limitations it is taking over could set some design constraints, but it would encourage each space to be maximized, would force several different projects forward leading to more diversification, and it would increase capacity (combination of more new attractions alongside preservation of existing assets). The show building could fill out that site, and be entered from the same direction as the fantasyland theater today. The castle entrance/bridge found both in florida and tokyo (Tokyo's more life-size, fixing the unsuccessful forced perspective we see at be our guest) could face it's a small world facade to the east. Where I draw the line with this position is where the ride experience/square footage is changed, rather than just the area development (think Pooh). If the ride system/show building fit in the theater space, it would be worth making the necessary changes to the area development/preshow/queue.
If it did need to extend further north, I suppose that the height of the show building and its position further east in toontown would provide the added benefit of taking care of the site line issue that has emerged in that land, which is that the backstage/offstage super structure of galaxy's edge's spires are visible from within the land. The spire's visibility is arguably acceptable if you are of the camp that accepts that disney e ticket wienies are visible all over the park and that anything in the disney theme park bubble/onstage is fair game, nowhere near as serious an issue as having non-disney property intruding in the park, but the spires in question are bleeding visibility of infrastructure usually only visible backstage/outside of a park, like the backside of expedition everest.
And about screamscape, while I agree that they have been successful lately with Disneyland rumors, they used to publish literally anything you would email to them. I used to make stuff up as a teenager and send it to them and they would publish it. This was a long time ago, and I think their vetting of information has changed with the times. Today, forums, and social media have made it easier to find information, find its source, and scrutinize it.