I love how the people who attack Storybook Circus are the same ones who would complain if Disney installed an attraction that did not fit within the "theme" of the surrounding land.
Quite simply, Dumbo does not fit in Fantasyland. It is not disguised under a medieval tent. And it does not belong in an enchanted forest.
Dumbo gets excused because it's a classic Walt original.
Yet if Disney were to install a flying Mishu The Dragon spinner in the middle of Fantasyland, people would complain.
Storybook Circus finally gives Dumbo the home he thematically deserves, especially now that the spinner is getting a twin.
Could the area be smaller? Sure.
But keep in mind, Pixie Hollow and the Princess Houses were exchanged for the Seven Dwarves Mine Train. I'm sure many agree that was a fair swap.
That leaves the former Pixie Hollow land now vacant.
Disney could have easily thrown up some walls and landscaping and cut that area off from visitors.
Or they could have found a cost-effective way to use the land, which they did by expanding Storybook Circus.
By doing so, they also solved the troublesome challenge of incorporating Goofy's Barnstormer into Fantasyland. And they could keep the tents, saving money for other FL improvements.
It's easy to say Disney should have spent more money to do something else with the area. But when given the restraints of working within the same budget, I think Disney made brilliant financial and creative decisions to pull this plan together.