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If done as a theme park though it could be pretty awesome as well.
I’d have the village from the first Shrek as the Main Street area, which is home to “The Dead Sheep Tavern”. Meanwhile Fiona's regal castle could be the weenie of park and at the end of it. Much like they have overseas in one of the parks, I can’t remember which one. But of course on a much higher scale, since Universal has the bank.
It would be a great way to poke fun at their competition down the street. Why not? They stole the idea for Hollywood Studios from them.
Theme Park layout
Adventureland - Kung fu Panda
Frontierland - How to Train your Dragon
Fantasyland - Shrek
Storybook Circus - Madagascar
Tomorrowland - Monsters vs Aliens
Main Street (back areas) - Trolls and The Croods