Turning Journey Into Imagination into Journey Into YOUR Imagination is not only the biggest EPCOT blunder, but one of the biggest theme park blunders to ever occur. They had a classic attraction with iconic characters, imagery and a memorable score. It honestly should have found its way into other Disney Parks. They had gold and in a series of bad decisions royally screwed up.
The Millennium Celebration was coming up and execs needed some new things to advertise to drive attendance. The trouble was that the poor opening of Euro Disney, the tragic death of Frank Wells, and several other troubles had had a profound effect on Eisner's attitude in handling things within Disney and the parks. The goal was to spend as little money as possible. But hey, some attractions had sponsors with contracts, and if they wanted to keep those contracts, they would have to pay. JII was in need of a refurb (various effects were troublesome and needed fixing.)
Not everyone working for the mouse really appreciated what they had - it's said that various acts of sabotage occurred at some attractions. This was done for HIStA's queue with it's placement to trick guests to not visit JII and lower the ride count. Disney then allegedly took this information back to Kodak to put pressure on them to put up the money for a major overhaul. WDI wowed the Kodak reps with lights and sounds for a pitch for the new attraction. Unfortunately, the world was going digital and Kodak wasn't getting with the times, so they financially couldn't spend much. This should have been the moment where someone said, "This isn't enough funding to do what we want to do. Let's just give Imagination a good refurbishment, plus up the special effects etc." Unfortunately Imagineers were hungry to make a name for themselves and full of hubris.
Clearly guests loved HIStA, so WDI decided to extend that theming in the ride's makeover and brought Eric Idle back to reprise his role. During the process of redoing the attraction, although Figment was featured in plenty of development materials, Eisner told Imagineers that he didn't like the cute purple dragon and to get rid of him. So out Figment went. The magnificent turntable had been troublesome, so to save on maintenance costs would just eliminate it. Then it was discovered that the original area of ImageWorks was not up to code, and considering how tight funding already was, it would be cost-prohibitive to spend the money to get the second floor to where it needed to be, so it was abandoned.
I would love to ask an Imagineer that worked on JIYI what happened (there's one that is listing his WDI materials on eBay that has caused quite a stir in the Figment thread) - an iconic and beloved attraction was hacked down into a cheap carnival ride. Maybe if WDI had had the funding that they needed, the attraction could have been better, but ultimately they relied on simple illusions and insulted their audience. Even merchandising was unhappy because Figment outsold Mickey at the park, and for some reason he was almost completely eradicated (save for a small cameo.) The outrage was swift, and JIIwF came just a few years later to placate guests. Sadly this temporary solution has lasted at Imagination longer than the original attraction. The sting lasts and lasts.
As they say, a picture is worth 1,000 words. Imagination went from this:
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...to this:
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...to this:
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I believe there's a story about Eisner riding JIYI and basically telling WDI - This stinks. I don't know about his dislike of Figment, though, as the reading I've done suggests he didn't like JIYI because it didn't include him.