It is outside the berm.
It's also seasonal.
It was also intended as a temporary venue until they could add a permanent replacement. The structure over the dining area is essentially a tent, and the kitchen is housed in trailers. There's almost nothing about the facility that would indicate they planned on it still being used nearly 20 years after it opened. To enter the building, guests walk under the railroad tracks, and then pass under a second berm that serves to hide the restaurant's structure
Even the serving stations are on wheels, as a quick and cheap alternative to building a proper structure
Along with some oh-so-fancy décor and lights, you can see the underside of the roof/tent structure in this photo
The Hat at WDW's Studios was also "temporary", but was removed after a mere 14 years. This place has been open (seasonally, at times) for 18 years and counting, with no end in sight. At this rate, it's already outlived beloved classic (permanent) attractions like the Kitchen Kabaret, Adventure Thru Inner Space, and Horizons
I know it's fun to rag on WDW's Pizza Planet restaurant, but compared to Buzz Lightyear's Pizza Planet in DLP it looks downright acceptable! I can only hope that the DLP restaurant has good pizza (especially considering the proximity to Italy), since it really doesn't have much else going for it