Agreed with both. Good issues to raise. Just Hollywood is very limiting, so we go with a "movie set which comes to life" approach like done with Star Tours. But - and I'm thinking out loud here - could we make the idea broader?
Gonna use Star Tours and the Indy Stunt Show as an example. Could we transform the entire area around these to be an immersive Star Wars Land? Basically, Galaxy's Edge but 20 years early. Entering this land from the Hollywood Boulevard area, there's a transition bit where guests pass through a studio soundstage where they're simply filming Star Wars. Slowly they enter Tatooine itself, and the entire land becomes the real deal, no more Hollywood. So within this land, Star Tours becomes an actual spaceport, the Indy Stunt Show becomes instead say a stunt show around Jabba's Palace, and around 2001 we add a Pod Race thrill ride to round it all out.
Other franchises which need immersive lands can get the same treatment. But alongside that we have several Hollywood-themed lands. What other IPs in the late-90's could yield whole lands?
Hollywood themed lands:
Hollywood Blvd. (entry area, GMR, stays the same)
Sunset Blvd. (TOT, otherwise add to that with more glitz and glamour)
Maroon Studios (Roger Rabbit land, film studio for all the Disney cartoon characters, can be our Fantasyland)
Griffith Hills (celeb mansions, Griffith Observatory, a green space which DHS needs, can include 40's IPs like Rocketeer, Indy, etc.)
Chinatown (vintage noir L.A. can host Richard Tracy's Crimestoppers, + an original ride based around Chinese culture/myth a-la Big Trouble in Little China, even "on location" film shoots)