I do like the Sorcerer Hat, however I do not like it's current location and support either it's demolition or location change. I think the front of the park, or where others have suggested are more appropriate then where it sits.
I look at it this way, not necessarly must we see every park icon smack dab infront of us or be able to walk right up to it. Knowing that the earful tower is there, seing it from various locations, and knowing it was the park's symbol is fine with me.
Remember the water tower is placed with a studio backlot area and rightfully so.
The chinese theatre is a wonderful thing that Disney has recreated. It should be something more to honor and not just hide away. Though fantasia is a wonderful film, it only envonkes the story of one movie, where the chiese theatre celebtrates much of hollywood's best.
To see the chineese theatre peacefully at the end of hollywood boulveard without the hat is a prized and unique thing for Disney-MGM, it should not be upstructed by the hat.
So with the options I have to vote, I choose removing it, however I would support it to stay, but in a far different location and away from the Great Movie Ride.