This is largely my take. I don't like the premise of taking away something for everyone to make an exclusive lounge. But I honestly am not that bothered overall as the shooting arcade was not really something we ever did. My biggest hope is that theming of whatever replaces it will enhance the area.
Even under the principle of "taking away the shooting arcade means fewer things for others to do making lines longer, etc" I don't think holds as the DVC lounge will likely occupy more guests at any given time than the shooting arcade did which (marginally) helps with crowds for everyone else I would think.
Disclaimer: parents are DVC so I will certainly be using this when it is built, so it does benefit me directly too. But I don't think my attitude would change much if it were a (say) AP exclusive lounge.