This pic from Blog Mickey shows where the pavilion is slated to go (between Italy and Germany):
The building there now is the Disney Youth Performing Arts space, which interestingly is who will takeover the theatre where the Circle of Life currently shows. That doesn't 100% mean that this venue is being vacated, but it does open up the possibility for them to demo the structure since Performing Arts will have another home with lots of seating.
It'll be interesting to see if changes start being made to this area or it just continues as is.