I thought I'd take a jab at redesigning the area since we brought it up, and honestly, I couldn't find a reason to get rid of the theater. There is such a vast amount of land back there without needing it gone.
Obviously, I had fun with this, I didn't spend all that much time thinking it out, a good example is the questionable thematic implications of exiting into a gift shop.
The main issue with the theater is the questionable facade, so I didn't bother rerouting the entrance, because that wouldn't solve the facade problem. I honestly don't know what they can do with it.
If we take a massive project like this seriously, then removing the theater becomes even less practical, because the money it takes to remove the theater limits the budget on the replacement. More importantly, its replacement would have to offset the loss of the theater by a large margin to justify its removal.
I'm going to be completely honest, I probably got a bit carried away.
Here's a gif version that shows a before and after.