Toontown is fine. Its only problem is it is too sun-baked. They originally had it so wide open because the Jolly Trolley ran straight through it, but now that that has been removed, they've been left with a concourse five times too wide. Plant some trees and grass and fountains.
What needs to be removed is the thing in front of ToonTown. That horrid theatre that looks like TDA went to K-mart and picked out the cheapest giant patio canopy they could find and erected it on site.