I think the current construction footprint is just so they can meaningfully address utilities around the former Mickey shape sidewalk and get that pathway back up and running.
This was never going to be a Pirates level attraction with the space they were working with, but I do think we need to wait and see how much they're going to build.
They recognize the property's popularity, but this was the only place they were going to be able to put the ride in on the quick unless they wanted to make more fundamental changes to the structure and layout of Paradise Gardens Park. I'd have to assume Boardwalk Pizza and Pasta are highly utilized given their capacity, the accessibility of the food offerings, and their importance as staging grounds for seasonal events. Accordingly, the area was likely deemed to be untouchable from the outset. I presume they'll get some thematic garnish that more completely integrates that with the Coco attraction come 2028 when there's a corridor a post-attraction exit corridor leading directly to them.
Nonetheless, yes, the attraction is constrained by its location, but that's not immediately a knock on it's ability to handle crowds. Capacity can be addressed by cycling more people, either through a continuous loading system ala the French Storybook River Boats, dual loading, larger boat capacity, and by having less timing dependent elements like the track switches on Frozen Ever After.
Just for the sake of clarity*, here's what the southern side of DCA looks like right now from the most recent satellite photographs. The splotch of black on the left hand side of the image is the bay of Paradise Pier. The white splotch near the upper right is the expanding footprint of the Avengers E-ticket show building. The splotch of brown on the left hand side of the image is the
current Coco construction site.
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*lol