This would be a perfect addition to Disneyland Paris. Storywise it would be a better fit for WDS, but DLP desperately needs a new proper attraction.
If they were smart they would build it on the expansion pad behind Fantasyland station and use the old theatre as the entrance and queue line. Seeing as the pad next IASW is leveled with the railroad it would require them to close the railroad for another lengthy period. With the space behind the station there would already be a underpass and thematically it fit's with the "popcorn-light" theatre style.
Of course this would require a new home for Mickey, but it's easier to move a mouse than to alter a railroad. How about they could build it on the small expansion pad behind Sir Mickeys, use the store as exit (and parts of it as entrance) and let guests meet Sorcerer Mickey, the original mascot of DLP?