First, it's not nearly the travesty that the Internet-filter makes it seem. It's nothing to write home about, but it is a nice air conditioned lightly entertaining attraction. If you think it's bad now, you should have seen the previews...this is the Shakespeare version.
The hate over it is one of the most overblown topics in Disney-fandom. It's got a great queue/pre-show set-up, and while I am also no fan of the corn dog smell, it also has some cute fun effects. It's not meant to be Tower of Terror. I think MILF is a much more objectionable attraction, that broke the rule of videoscreens - they used video screens to replace what could have EASILY been animiatronic, not to produce an effect that was otherwise unachievable.
(All that said, of course I prefer Alien Encounter, no question, but that doesn't make me not look at this for it's merits.)
Now, as to why "it's still there"? Anyone who asks that question makes me want to turn around and ask, "Are you new?"
It works. They dumped some low millions into it a good number of years ago now, and it still operational, and still sucks up some guests from running straight to Space Mountain, or gives something to do for folks stuck because of a parade.
Disney isn't going to spend a dime on it because it serves it's functional needs.
I think this is really a dire case of "be careful what you wish for". If they did decide to close it, one of three things would happen:
1) They would shutter it, expand the store next door into the queue, it would remain closed up like the unused portions of Imagination, used for storage at best.
2) They pull it down, install a new Meet and Greet.
3) They pull it down, and replace it with something even crappier, a walk-through with a few video screens, something on the level of the "Prince Caspian" movie walk-through thing over at MGM, that makes us wish for the smell of corn dog farts.
TL;DR? -- things as they are now, and in that location of the park - if it went away, anything "replacing" it would suck more, and if you just don't like it, keep walking by, because it does serve some purpose and is better than nothing.