I love Mr. Toad and would have been happy to see it return to MK, but that's probably not the first franchise I would have considered for the FLE. I think a dark ride -- and if it used LPS, even better -- themed to Sleeping Beauty or Tangled (or actually having a ride themed to BatB) would have been a perfect fit in the Fantasyland Forest part of the FLE. I don't know how plausible it would have been, but feel like they could have "buried" a ride within one corner of the mountain of the 7DMT (the side facing LM/BatB), having the coaster go over the dark ride in that area, but better utilizing the space and adding another draw and capacity to the area.
Or alternatively, instead of Pete's Silly Sideshow, they could have made that into a ride instead of a M&G, with the tent being the queue/entrance and having a showbuilding behind it. I know M&G's are popular, but I don't think there was a huge pent up demand for the big 5 in circus outfits -- and even if they wanted to add that, they could have had an smaller M&G (one character at a time) set up in the back tent that houses the FP machines.