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The biggest knock against Muppets is that there is no way it won't impact the service road, and a coaster building could be visible from Galaxy's Edge.
In the attached picture , even if we are thinking it is a small coaster building (this is approx. the size of the main building for the post-launch section of RnR, it does not include the queue or launch sections), that still would mean going onto the service road, using the old Studio store as the queue building. It would still necessitate demolition of the backside of Muppet's Courtyard, which makes sense from the concept art, likely utilizing a rethemed Grand ave. as Monstropolis as well.
I am assuming it would be at around 80 ft tall, if not higher. In all likelihood, the main building would be nearly twice the size going off the model.