The original design that was created by imagineers back when the park opened, was that when you enter the park you are transported back in time to the Hollywood boulevard of the 1940's, notice the various businesses on each side of the road with the old style signs. The crown jewel to this effect was the grand Chinese Theatre at the end of the street, it really completed the effect and made it feel like you were really there.
Now that the hat is there, the whole effect that those imagineers worked so hard to setup, has been flushed down the toilet in the name of "advertising". The problem with the hat is that it symbolizes the change in Disney thinking, from "make the park a quality experience", to "fill the parks any way possible". I think the hat is beautiful and has a place somewhere, but its current location is not where it needs to be. It has taken the entrance to the park from a beautiful recreation of Hollywood circa 1940, to a mish mash of buildings with a hat in the middle. It can stay in WDW but it must be moved to allow future generations to view the splendor of the architecture that imagineers worked so hard to create.
On my last visit to MGM Studios(2003), there was a team of workers working on the Chinese Theatre exterior (painting, repairing, etc..) I think the chinese theatre is a beautiful building and there is no need to cover it up. I think the water tower is a great park icon. Why should guest have to see the "icon" as soon as they walk in the park ? Its there, just because guests aren't inquisitive enough to look for it and have never seen it doesn't mean that they can't use it as an icon. There are numerous points in the park where the water tower is visible.