As has been said before, "family" doesn't automatically equal "kiddie." I have every confidence that - if they wanted - Universal could build a ride that everyone from 5 on up could get something out of. A truly all (or most) ages ride doesn't have to be a nothing attraction. In fact, some of the greatest rides ever built would fit the description of being "all ages" (Haunted Mansion, Pirates, Spaceship Earth, Horizons, etc.).
And kids aren't averse to attractions with a little bit of edge, either; just to use Universal for an example, as a 6 year old I loved Kongfrontation, Jaws, Earthquake, Hitchcock, and the Makeup Show just as much as the attractions that were more explicitly targeted at my age bracket, like Ghostbusters, Hanna-Barbera, and E.T.
That's all my long-winded way of saying that I'm sure Universal could build a Dragon Challenge replacement that could accommodate most age groups and still be fully satisfying as a fun experience.