Anyone else notice Rusalo says "...and someday when our vision of Fantasyland is finally realized...." talking about Pixie Hollow?
It sounds like Pixie Hollow is not part of this expansion and may be where the budget has been cut.
I expect this means TTF will still be around for awhile, hence the carnival look of the Dumbo area. We'll see, but if I had to bet, we'll never see Pixie Hollow. I think it's Jay's intention to leave TTF just the way it is to save money. TTF fits in perfectly with the new Dumbo area just in case Pixie Hollow doesn't happen.
Regardless, I'm betting the expansion goes like this:
(1) work starts and is completed on BATB, TLM and Cinderella's Castle. Pooh's Playful Spot will be the only thing to close.
(2) work starts on the Dumbo area while TTF stays open. Barnstormer is closed and re-themed. It's possible that Barnstormer may not close for long if their intention is to move the queue house.
(3) The new Dumbo area opens with one spinner. The original is closed and moved to the new spot. Cinderella's Castle is completed.
(4) BATB, TLM, Cinderella's Castle and Dumbo open. Snow White and Pooh rides close for renovation of their queue areas. I imagine most of this work will proceed while the ride is open and only close at the end of renovation.
(5) TTF stays open through the makeover and is only closed IF they decide to proceed with Pixie Hollow and after the rest of FL is compete.