I like the idea of the shire in the theater's spot.
Perhaps the Toon Lagoon shops/restaurants can be demoed and turned into Rivendell.
An idea for Dudley's replacement. I think a mine-train style dark ride through the Misty Mountains/Mines of Moria would be cool. You can encounter stone giants, the watcher in water, goblins/orcs, and culminate the adventure with a battle against the balrog.
I like the idea of turning Bluto into The Hobbit barrel escape. You could even retheme that surrounding area(The Olive, restrooms, shops) into Mirkwood Forest.