I think if the new Fantasy Faire wasn't being built, it would be great for the Skyway area with a nice garden theme or something. Each princess could have their own little gazebo themed to their film. If not, I think just moving Rapunzel to a tower, giving Tiana a meet-and-greet in NOS, and giving Belle a meet-and-greet at a new ride that should be built for her would be great. Heck, I'm really not a fan of the new Fantasy Faire being in the hub so just building a new meet-and-greet section would be my personal choice if the other one wasn't already being built.
there really isn't much room up where the old skyway chalet is . The mound of dirt is also built partially over an access tunnel if i remember correctly. that is why i only suggested a rapunzel only meet and greet. it also works great because of all the greenery up there and a tower could be built that looks tall but does not overpower the rest of the park
How bout build underground attractions so it wouldn't take up so much space. Demolish toontown, build attractions under the area and make toontown way better with more attractions and shops. Oh and then for fantasyland have facades that help for the rides underground on ground level and the queue slowly goes underground to attractions. it would save much more space but would cost a lot but just a thought.