A lot can be done with this space, and the proof is what Disney has done recently with its 3D shows that temporarily close for special previews of their new movies. Look at what they did with Guardians of the Galaxy and Maleficent for example. Took advantage of in theatre effects, upgraded the 3D systems, took advantage of any installed 4D effects, etc. And turn around time was FAST. Universal could do the same. Or better yet, take the time to give the attraction minor updates. I don't think there are any excuses in this day and age when this attraction isn't that much more advanced than standard 3D theatres now a days.
It needs to be transformed into a fancy Flex space Broadway-themed Theatre that can be used for Universal movie theatres, corporate/private events, stage shows, relocated shows, seasonal shows, and an updated version of Shrek during a slow season.
I hope this 2 week down time will at least START to address the issue. Updating the show a bit would probably cost less than the new queue/facade...