Flattening the curve through social distancing was intended to prevent an initial rush on the hospitals, overwhelming the entire system. Lessening social interaction leads to slower spread. With a flattened curve, the same number of people get sick, but over a larger period of time, therefore allowing the hospitals to be able to cope with the number of patients at all times and never have to turn anyone away seeking lifesaving treatment. The idea of socially distancing until there is a vaccine was not discussed at all until more recently, but that has always been completely unrealistic from an economical point of view.
Shanghai opened Disneytown almost exactly two months before the proposed SDL opening date. If WDW is truly shooting for a July 4th opening, DS would likely open soon to follow Shanghai's example. There have been some signs that it will open soon, as Florida has loosened restrictions and one of the garages opened. Tenants will likely make the final push in either direction based on how other restaurants and shops perform in the area.
CityWalk Orlando is popular among locals, more than Disney Springs from what I have heard. I do not live in Orlando, but my friends who do say that CityWalk, and Universal in general, is preferred by the locals over Disney Springs, and WDW, due to convenience and price.