The Chinese Theater was never the symbol for the park. It was just there to house The Great Movie Ride, not to serve as the symbol. Before the hat came along, the icon was always the Earful Tower.
I think mostly the reason to why the hat was built and where it was built is because the Studios didn't have an icon in the CENTER of the park like Magic Kingdom, Epcot (sort of) and Disney's Animal Kingdom do. But could they of moved the Earful Tower to the center of the park? Well they could of, but it wouldn't look right with the Chinese Theater in back.
I personally like the Sorcerer's Hat, I have yet to see it in person but I think it serves the park well with how it is today. I also think it fits even better with the new name, Disney's Hollywood Studios. We do have to face facts, the hat is not going anywhere. They built that not just for the 100 Years of Magic Celebration but to stay there as the new permanent icon for the park. Then there's also these rumors of legal issues with the Chinese Theater but I'm not so sure if that's true or not.
But in closing, I don't know why people think the Chinese Theater was the central icon, it never officially was. It was first the Earful Tower, but now it's the Sorcerer's Hat and it will stay that way for quite a while.