If Pokémon doesn't get every last inch of LC, I will only assume Universal has brain damage and is actively allergic to money.
This IP is huge. Bigger than Mario. Bigger than Potter. This is an IP that has controlled several generations since it's release and only continues to grow to this day. This IP's merch sales will make HP's looks like child's play. The wait times this IP will have will make opening Hogsmede look like a short self-checkout line at Walmart.
Pokémon is bigger than Universal itself as a brand. When people see that "the other theme park" has God damn Pikachu there, taunting them like a siren to give them their money, they will flock like birds.
Pokémon needs every inch of LC to have enough space for the people it will attract, hell, it might even need to eat some of Seuss, hell, maybe Hogsmede (joking about this part, legally).