It's easier for folks to lump into "problematic" than to just accept that something once loved is no longer loved. Specifically here it's a relatively small space with few alternative uses compared to alternative spots. Part of the reason it can exists in other parks is because the park itself doesn't want to pay to replace something small. At MK, costs to run are likely low but MK leaders probably view this as turning a cost center into a profit center, considering that DVD or DVC is going to pay to rent the space.
It's a win for the park to get paid for something not utilized but has expenses. It's a win for DVD to sell DVC points direct, to have another lounge as a selling point for guests. It's a win for DVC members who will have a new space. It's a loss for people who love Shootin Arcade but the number of people who were shooting per day is likely way less than the number of people that will use it daily as a lounge.