Sorcery co-existed with Fantasmic for a short time.
The problem, as Animanic mentioned, is that a decent chunk of the back of the park has to be closed as a pyro fallout zone. This includes all of where TSMM, HISTA playground and the Backlot Tour are. When the park first opened, this was a non-issue since all of the open areas were off-limits to Guests anyway, or they were easily-closed areas without any major attractions. (I remember the emergency exit doors from the soundstage viewing catwalks having firework fallout zone warning signs on them)
They have since removed the two towers behind the Chinese Theater where the inflatable Sorcerer Mickey was, as well as the center pyro launchers for the Over the Rainbow segment. The rooftop launching tubes have been removed from GMR show building and the One Man's Dream building complex, though they can still have tubes set up on the pads for special events.
-Rob
