Not sure source for the rumor but DSNY based on on something he heard, not just made up - but things can be a bit of an echo chamber so hard to tell where things start and if same made up thing just cycled
Personally I like Villains better there than in MK as MK/Fantasyland includes the full story with the villains - like Gaston's Tavern already there, Captain Hook already in Peter Pan ... Just feels like don't need the Villains there and in their own place
Whatever they do, hope it is creative and immersive and not just a single IP