I'd much prefer an expansion of Storybook Land for 2014, really. They could use the Adventure Land, the Ice Show Tent and take the Dung Heap as well. I think the area could really be stunning if Squirrel Nutty and the theming was done up for 2014 along with a new show in the tent, a new kids coaster for the Dung Heap site, a retheme of Sonic Spinball and a new flat ride or play area where the Beastie was.
Storybook Land could essentially be everything in Shrek anyway, so why fork-out for the IP when you can have the same characters
and more for free (I think
)? They could have a mixture of fairy tales and nursery rhymes merging to create a really beautiful area that younger children will love and their parents will enjoy too.
They could use The Three Little Pigs, Red Riding Hood, Hansel and Gretel, Rumpelstiltskin, Three Billy Goats Gruff, Puss in Boots, The Ugly Duckling, Goldilocks and the Three Bears, The Ugly Duckling and There was an Old Woman Who Lived in a Shoe (purely because they could build a huge shoe
) for their attractions, etc...
I'd just be really sad at the loss of the entrance from Towers Street into Storybook Land and the buildings for Squirrel Nutty and the Ice Show tent. It's all really magical and it'd be a shame not to incorporate them into a new area or just expand/improve what's already there.
I like the Narnia idea, but as has already been mentioned, Disney/Fox/whoever already have the rights to that.