I agree with the general sentiments on here. First off, WoC will not (or at least should not) come to EPCOT (wrong theme), MK (would require another expansion), or AK (wrong theme again). That leaves DHS, which currently has Fanstasmic. This park would surely fit the theme, and also, yeah, they could use the Fantasmic theater. However, if I were the TDO, I think I would pick Downtown Disney. From a business perspective, you have these shops, restaurants, ect. that are often open later than the parks, what better way to get people there than a show! I know I would head over to DD for a show, and then the people are most likely going to shop, and eat, ect. This would be a great addition!
I know people are saying the lake is a problem, and yes, they are correct. However, bringing this show would be a pretty big project, not something where they would just "drop it in and hit go". So I am sure they can find a solution, possibly even make an expansion for it.
On the other hand, I guess it can also be considered, would Disney want a show outside of their parks? They'd be competing with Cirque, and I am sure they would rather you eat dinner in the parks. Also, logistically, how would admission work? Would you need a theme park ticket to get into the show? Would they want to allow anyone and everyone to come and see it, in hopes of those people shopping and eating?
That's my two cents for now! Love to hear what you guys think!