During the 18 months I worked merch in TLand, in the shops at the exit of Stitch, we heard a never-ending stream of complaints from disgruntled parents. The ride had hurt their child. Had frightened their child and they couldn't get to the child to comfort them. Every ride dump had at least one crying child. I wondered how much time/$/energy the GSMs had wasted over the years on service recovery just from this one attraction. I am sure my old TLand friends will rejoice at this news even more than when they closed the SM arcade.
My suggestion for a replacement is to gut the entire inerior structure, and create a massive meet-and-greet bazaar. Get Stitch inside, and consistent. Get Buzz inside. Proper photo ops with Incredibles til the Dance Party starts. Add other TLand attraction chars like Mike Wizowzski, or obvious tie-ins like Miles From Tomorrowland.