Well, I certainly would hope so! I'd really be tacky if they left it as is. A new beautiful victorian themed peir, but this hotel that looms in the background that doesn't match the theme. I think they will, but it'd be on the backburner for now, with everyone's energy focused on DCA, and all the major stuff going on inside. I could see them really making the hotel quite elegant with the victorian theme.
It should be done, of course. But whether or not it will be done is another matter. With the current economy, I don't think that Disney will greenlight anything that expensive. Remember, the DCA Expansion is only happening because the money had already been locked up and ready to go before the downturn.
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It would be AWESOME if they created a hotel that is harmonious to PP's theme and acted as a main entry point for hotel guests a la The Disneyland Hotel Paris. But instead of it primarily being a place for lodging it would also act as a victorian entertainment venue.
The main lobby would be decorated in classic toys of the era including doll houses, zoetropes, and vintage bicycles. But the main attraction would be a majestic carousel (for display only). Not to be out done, the actual ride in the park would be upgraded to two stories.
I just can't wait for the games to reopen. Being a former games cast member they hold a special place in my heart. With so many good times I had there I cried a little when I heard they were changing it but change can be a good thing.