The show building for IaSW isn't that massive. It's the same square footage as either Imagination or The Seeing Eye Theater.How would that work? The show building for iasw is massive.
Not to mention that the entrance to the Utilidors is built into the back of it, so it can't really just be "removed."
The entrance to the the Utilidors is next to IaSM (Pinocchio's Restaurant is over it).
A park-level area (even a covered one) can be put it in its place (or refurbished) that leads to a second story exit out the back over the road and gently ramp down to the acres and acres of land that surround the northern loop of RoA.
BUT... MK doesn't need a new land until the other three parks are beefed up with at least three new rides each.
BUT... if a new IaSW is built in EPCOT with fidelity to the old ride but dramatically plussed in experience, then the current IaSW can be transformed temporarily into a people-eating C level ride or theater for now.