The concept of a fossil town with a roadside dinosaur attraction is perfectly sound. There are places like that out west in Arizona, Colorado and Utah. The area surrounding Dinosaur National Monument with the towns of Vernal and Dinosaur even promote themselves as "Dinosaurland", with
Dinoland being their domain name. But for some reason, Dinoland USA does that "This place was here before Disney and they just built a park around it" thing that Blizzard Beach and Pleasure Island did instead of actually taking you out west where there are bones in them thar hills.
The problem is that a carnival is a godawful, inauthentic way of doing a roadside dinosaur park. The dinosaur parks around America that still exist like Oregon's Prehistoric Gardens, Michigan's Dinosaur Gardens, that weird one near Natural Bridges with the wacky Civil War Dinosaur mashup story, Virginia's Dinosaurland (which comes complete with Disneyland-esque logo), are all folkart-meets-paleontology and are all about nice shady walks through a forest/garden full of sometimes wonky looking concrete dinosaurs. You don't translate that idea into a asphalt wasteland of county fair rides, what you do is a dark ride or Jungle Cruise-esque thing that embraces that offkilter silliness of pop culture's prehistoric monsters.
Anyways, here's a great old video from the 90s all about Roadside Dinosaur parks.