Do you think people working for Disney in Paris know all the background stories?
"People" is pretty general, but yes, there are plenty of them, including but not limited to DLPI, who know those and more. Keep in mind that, apart from the fact that there's plenty of documentation, several DLPI Imagineers actually worked on the park's creation way back when. Unfortunately, as I've explained before, they can't always have their way.
I don't know the detailed history of Woody's Roundup Village, but taking an educated guess I'm pretty sure it was initiated by DLP management. I know they were looking for something to replace the petting zoo after bird flu shut it down, and I guess Pixar was what looked most attractive to them until the area will receive its permanent fix... whether that will respect the original Frontierland story or bring in more characters, we'll have to see.
For more about the Frontierland story, I'd recommend the book "From Sketch to Reality" (Or go
here; it's a bit long and mostly about Phantom Manor, but there's a lot of accurate information concerning all of Frontierland).