You could do it in countless ways - mini-lands like you mentioned with Naboo, Tatooine, Hoth, Death Star, etc. or you could do incredibly themed areas like a Jedi Temple, Empire Base, etc., etc. Or make just do what they did with Harry Potter and make it a generic backdrop - none of the timelines there make sense with Diagon Alley, but the fans (and non-fans) don't care. And if the new movies are popular, those characters could walk around HP and add attractions with them and everyone would celebrate.
Fans want to see the characters they love (and future characters) and go on attractions featuring them - this idea it all must be some defined, locked time/place was an idiotic idea from the jump, especially considering the vastness and timeliness of the Star Wars universe. There is freakin' Darth Vader AND Kylo Ren in the Jedi Academy at DHS and the kids and crowds go nuts.
You are exactly right about Fantasyland - and that is why it has worked beautifully for 60+ years and will for the next 100 years.
I agree, Disney was trying to do something different - they tried and failed miserably. They ended up with the worst of both worlds - leaving out complete eras of past and future Star Wars stories and didn't execute on a "living, breathing world" at all. So we are stuck with a boring, deserted "Batuu" that is stuck in the middle of a single saga - had they waited one more year, the entire story would have been different. That's the problem with trying to lock it down like that.
So we are left with Boba Fett wandering around a pizza place in Tomorrowland at DL, the Mandalorian not even being in the land, and if was he'd be a senior citizen, Baby Yoda merch on a cart in the tunnel, and no chance for any of the characters in the upcoming Kenobi series or the new Clone Wars series to be in the billion dollar "Star Wars land". Brilliant, Disney, brilliant.