That this is being floated is probably a reliable indication that it's been proposed or considered by TDO. (Can any "insiders" dispute that?)
If so, then maybe it's time to lose all faith in Disney. The room for expansion is obvious to everyone, and the sense of demolition and reconstruction is obscure, at best. Fans have been clamoring for a new nation in World Showcase for years, and they would be the target audience for any expansion. Only they, and not the casual, once-in-a-generation visitor, would acknowledge the significance of a new nation along the lagoon. But their enthusiasm would be tempered, if not completely abrogated, by the symbolism of corporate stinginess and of creative constipation represented by replacing an older pavilion with a new one, rather than simply adding.
This would be the equivalent of offering a child a spectacular Christmas present, but only in exchange for his cherished birthday gift from a few months back--absolutely insane. The money is already spent on the older toy, which may have lost some of its magic, but still warrants the love of something comfortable, familiar, and irreplaceable. What's the sense of abandoning it when the cost of replacement would only add to the expense of new construction?
This thread was from a Screamscape (I believe) posting that said someone had emailed into the site claiming they had partaken in a poll asking them what their favorite country was and which one they wouldn't mind see departing, if replaced by a new country. Surveys like this are not uncommon, and I wouldn't put much stock in them replacing any existing pavilions with a new one any time soon.