Yup! Although what you'd eventually see is the village area further reconfigured to connect properly with a portion of the ring entrance. Green would be how they would re-imagine and displace the village Orange is an expansion for a third attraction, a similar location available to both DL and DHS. For fun the Blue would be an obvious boutique hotel location.
It goes without saying the Disneyland form factor is thrown out the window, they are already building a different setup and facade.