Good.
I mean, come on. The puppet theater is gonna disappear sooner or later. Again, it was removed from Disneyland and nobody shed a tear. (Where were you THEN, Josh Gad?)
The VAST majority of parkgoers will enjoy a Monsters Inc. Land more than they every enjoyed the puppet theater.
(Again, I'd prefer Roger Rabbit as a replacement, but oh well...)
Vastly different audience and park that can't find its tone. And it was not the original. And Muppets was a part of a park that was and is still struggling while Philharmagic was a hit coming in.