The transition from Main Street to something more like Toontown has been going on for a long time now.
Helps to justify the meet 'n greets and character merch and the removal of any activity or items that may actually support the OG theme.
This is exemplified in Mickey Avenue in Shanghai Disneyland, which is exactly that, a Toontown version of Main Street. Victorian looking buildings, but with cartoon proportions and cartoon proprietors.
I think it really comes down to this. As Disney’s own portfolio of content, architecture, etc has grown, they have relied more and more on their past work, rather than anything from the real world, for inspiration. The original Disneyland and Magic Kingdom Main Streets were Disney versions of real main streets. These new main streets are Disney versions of Disney main streets.
Main Street in Disneyland and Magic Kingdom are theme park versions of an actual Main Street. They’re sanitized, and exist in a heightened reality, but they’re based on real main streets that existed in the real world.
Moving forward in time, Disneyland Paris’s Main Street is based, not just on real main streets, but also on Disney’s previous main streets. It is a copy of Disney World’s almost down to the building, but even more “Disnified”. More ornamentation, more vibrant colors. It skews farther towards the fantastical than it’s predecessors. It’s a Disney version of a Disney version of a real Main Street. It’s even more heightened, but the real Main Street is still there.
And now you have things like Mickey Avenue and this redo to the confectionery which heighten the reality even further, to the point where these spaces aren’t even inhabited by real people anymore, but by cartoons. It’s completely removed from what actually inspired it. It’s been put through the Disneyfier so many times that the original source, an actual real life Main Street, is lost.