What was culturally unfair? I don’t agree with Disney’s reasoning.
The story that you relayed regarding the outdoor portion is widely shared. It’s claimed that Chinese people at Hong Kong Disneyland couldn’t figure out that Space Mountain was ride and would just take a picture and go about their day. This question and story ignores history. TRON Lightcycle Power Run isn’t the first Space Mountain that starts outdoors. Nobody tells the story of the silly clueless French people who couldn’t figure something out so they had to put the launch for Space Mountain: De la Terre à la Lune outside. And let’s not forget that the marquee for Space Mountain at the Magic Kingdom once included a physical ride vehicle with riding astronauts. There are challenges communicating an experience that cannot be seen, but the story as related to TRON and Space Mountain at Hong Kong Disneyland is specifically about Chinese people and how this is an example of building a park suited to Chinese people.
This though is not the only story about the Chinese parks that gets shared. There are a variety of them and the common thread, often played for a laugh, is that Chinese people just wouldn’t understand the discussed aspect of a theme park. When they all get combined you get a very negative stereotype of Chinese people. Disney did wise up a bit after Hong Kong Disneyland and doesn’t discuss the “distinct” aspects of Shanghai Disneyland.
Both Hong Kong Disneyland and Shanghai Disneyland are very much laid out based on this silly idea that Chinese people prefer to take pictures instead of ride rides. This is the public justification Disney gave for reducing the size and number of rides that were originally announced for Hong Kong Disneyland.
That originally announced version of Hong Kong Disneyland, the one Hong Kong officials were mad did not materialize, included Frontierland and Toon Town. The lands nixed because the Chinese apparently wouldn’t understand and would not be interested in so many rides.
You’ll also see claims that what rides that were built had to be simple and calm lest they overwhelm Chinese visitors, completely ignoring that there are plenty of thrill rides in China. It’s also one of the reasons Mystic Manor had to be more cartoony than The Haunted Mansion and it’s original conception, so as not to be too startling, even though it is the local entertainment team at Hong Kong Disneyland that puts on the one Disney Halloween event that actually has scary elements including a haunted house walkthrough.
The Progress City Radio Hour interview Tom Morris is worth a listen. It’s about a variety of topics of which the Chinese parks is a small part, but he gives examples of some the ridiculous ideas that Disney had regarding their audience in China.