It also sounds like you are a grown adult. Which is an entirely different demographic than a 9 year old boy. Historically, Disney cartoons were mostly aimed at parents taking their young children to the movies. That's not to say that a couple of college kids couldn't have gone to see Sleeping Beauty or Aladdin or Frozen together. Also not saying that a childless adult living in New York couldn't have gone to see those movies with their childless adult friends after drinks at a local bar.
But those are not the demographic that these films are not only aimed at, but (perhaps most importantly) are required to make financially successful.
I think the problem here is that the Burbank executive class, living in the sealed off bubble that so many in media/entertainment live in, convinced themselves by listening to their own morally superior Talking Points that they were right to push the envelope on gay themes in children's films as they have the past few years.
The marketplace of free consumers has spoken in 2022, and that marketplace was clearly not ready for it. Not in 2022, likely not in 2025. Maybe in 2030 or 2040? Who knows?
I liken it to the first inter-racial kiss on American TV; the kiss between Captain Kirk and Lt. Uhura on Star Trek around 1967 or '68. It pushed envelopes, to be sure, but it was timed correctly. If the first Television broadcasts in America in 1939 and 1940 had featured inter-racial kissing it would have revoked broadcast licenses and crashed whatever business plan of whichever network dared to show that in 1939. But by 1968? It was racy, to be sure, but the timing was right.
I think that Burbank has overplayed their hand on their timing for putting gay characters into children's cartoons. The free marketplace of parents around the entire planet in 2022 has now made that quite clear.
After 2022's decisive marketplace statements, the ball has been placed back in Burbank's court. Where will they serve it, I wonder?
Guilty as charged -- grown adult, married with no kids even. (What am I doing on this site again?) FWIW, we do try to share slightly deeper media with our godkids/nieces/nephews when we have them, but we also have the time/energy to make those things more engaging by helping the kiddos through them. I entirely understand why so many parents end up falling back to Paw Patrol instead.
I totally agree with the business cases you're making. There's really been a triple whammy here: 1) the pandemic caught everyone with their pants down, 2) Disney shifted all of their eyeballs to the money-losing D+ (with the exception of the MCU, which remains "event" viewing), cannibalizing all of their ancillary income in the process, and 3) the culture wars that you're alluding to.
I wonder if it would have worked for them if they had practiced a "one for me, two for everyone" strategy instead where they slowly worked certain elements into their movies alongside their broad appeal stories.