Transition from what? DHS is largely the same park it always was, minus the actual production. The randomly placed, hardly themed soundstages, which make up a majority of the park, are still randomly placed, hardly themed soundstages. Some just have different attractions in them now. Sunset Blvd has been the only major expansion of the park since it opened, and coincidentally(?) it's also the only part of the park with quality theming and sense of place. Even one of the park's newest projects, Pixar Place, is just a soundstage with bricks and Toy Story decorations slapped onto it. Woo-hoo. As far as I can tell, DHS is still waiting for a transition.
People often complain about certain attractions in USF, such as Twister, not fitting thematically in the lands they're located in. Do you know why they're able to make this complaint? Because USF actually has distinct lands (with a couple lacking exceptions.) Outside of Sunset Blvd and a basically empty NY street, DHS does not. This fact doesn't forgive USF's theming mishaps, but if USF is a "theming nightmare," what does that make the considerably less themed DHS?