In an ideal world they would rip out Pete's silly side show, Gaston's tavern, and the bathrooms there (would need to find new place for bathrooms). Then build 2 bridge over the road to the utilidors in a way that guests wouldn't know they were on a bridge. I present New New Fantasyland!
I found room there for Pinocchio (DLR), Red Rose Tavern (DLR), Alice (DLR), Pan (DLR), Toad (DLR), and Tangled (TDS). Maybe another C ticket dark ride could take Pan's place. This did involve a slight re-route of the WDWRR and some movement of ponds.