If it ends up that the wait times are far too long or that this setup is unpopular with guests, they could easily reconfigure it to a simple M&G in the library without the storytelling (I guess they'd have to change the name of the attraction as well then). But, since the M&G existed in this form for quite some time and Disney presumably has significant feedback on it being a popular format, I'm guessing it will be around for the long haul.
I could be wrong, but didn't they replace the Belle M&G with a Tangled/Rapunzel one? And that one involved Rapunzel dancing with her visitors? I bring that up because I suspect Disney has found that guests are actually very impressed with more interactivity with characters. The Cinderella and Aurora M&Gs in the original FLE were also interactive, so I think we'll see more progression in that direction, not less.
Personal story: when I was just out in DL with my two young sons a few weeks ago, we were the last ones in our group to meet Mickey at his house in Toontown. As a lucky result, we got some extra time with Mickey which involved him playing tag and hide and seek with my sons. I cannot tell you how amazing it was for them and I think they'll cherish that (and I know my wife and I will) for a very long time, more than the standard "pose and smile" that you get. The more interactivity with characters, the better, I think for a lot of people.