As it is, the initial concept for the Fantasyland overhaul called for several separate meet-n-greets for the Disney princesses, like so (note the Tremaine chateau in particular):You could always extend it into fairytale gardens, which is right behind it.
However, at some point, it was decided that there was not very much in terms of exciting things to do, and the princess meet-n-greets were concentrated into one area, which, yes, eliminated a dark ride, but as compensation did lead to a family-friendly roller coaster. If I removed the princess meet-n-greet just for a dark ride, where would the princesses go?
Also, to answer @spacemt354's post earlier, just because I may feel it's best, does not mean someone else feels is best. When I brought up a new idea for a Pinocchio ride by where the Speedway is now, @MickeyMouse10 in particular told me that anything Pinocchio-related absolutely has to take the Village Haus into account, or it wouldn't make sense. When people tell me that my idea doesn't make sense, even though I think it does, I tend to assume they're right, or they wouldn't have said anything.