Absolutely the wrong solution...
The right solution is one of 2 things..
1) eliminate it completely. If this is a no win scenario for Disney then just dump the whole thing. If you can't serve the demand, then eliminate the m&g and then no one waits.
2) Concentrate the m&g in 1 area. If you put 3 sets of them out in 3 different parks, you stand a decent chance that at least some % of the people will meet with them multiple times. This CREATES demand, not satisfies it.
The issue at MK isn't space, the issue is bodies to play the part. If they had more rooms, with more clones doing the job, they would increase through put and this decrease wait times.
One other point, since this topic seems to be on fire... You get a ticket to the MK, it does not guarantee all experiences. The m&g is a show. Not significantly different than Fantasmic, or the Candle Light Processional. Maybe that is why you went, but when the show has hit capacity, there is nothing more to do. Unless they increase capacity, your are just SOL. Being willing to stand in a 5 hour line for an experience that has already reached its daily capacity is just silly.
This paper "fastpass" system simply fills capacity while reducing the amount of inconvenience as possible... Remember when there was a hot selling concert ticket going on sale? People would stand in line for hours, or even all night. Then they would be given a wrist band with a number, so that they could leave and come back. Same thing. Those concerts sold out in minutes, and only the fanatics who stood in the rain and got their wrist band got tickets. This is the same thing. Once those tickets are gone, the experience is simply unavailable.