Something I threw together. I'm imagining how they get Avatar to work directly off Hollywood Land, and so I am thinking, perhaps it's something like "Now Presenting: Avatar", and you step through a Hollywood Facade, a movie theatre facade, into the movie. They extend the facade, fully enclosing the street on that side, removing the current entrances into the Hollywood Backlot, building an "enclosed" land, like Nintendo World, a portal into Avatar.
Green arrows for possible entrances / exit. Pink Arrow for maybe an exit from the Philarmagic theatre back onto the street? In this scenario, the world of avatar is preserved and immersive, and you could keep your dining on the streets of Hollywood.
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I assume it'll extend out into the bus loop, per the reworked entry.