The original Studios were a great place to film game shows... and that's about it. Initially, there were tax breaks for filming in Florida, but those went away. Also, most productions aren't keen on tourists constantly walking by on catwalks all day. Add to that the fact that Florida is a Right to Work state and they couldn't get the skilled technicians and production staff that they could get elsewhere. It was doomed from the start. It wasn't only Disney that made the same mistakes, though. Universal did the same thing. They just got rid of their working studio facade a lot sooner than Disney did. The only reason Disney/MGM Studios was built was as a panicked reaction to Universal moving in next door. It was thrown together in a hurry and, when it opened, had very little that the average guest wanted to experience. Heck, they've been playing catch-up on that ever since. It was a great idea for a park... in California. Unfortunately, Disney didn't have land around their studio in California where they could build a theme park, unlike Universal. Also, most of their live-action stuff isn't even filmed on the Disney Studios property. They got rid of their backlot and only have a couple of soundstages.
TL/DR Eisner had a big ego and generally terrible ideas.
