I think the more realistic thing to do, assuming Shrek is to be replaced at all, is to port the DreamWorks Theater in its place and then pop SLoP at Toon Lagoon where the amphitheater is, as many have said.
But then, why are we wanting everything from Hollywood to come here? I was listening to a podcast from the Orlando Sentinel a couple days ago, and they were talking about Cars Land and how everyone wants it ported to Orlando, but that doing so would take away from the uniqueness of both DL and WDW. Why would I go to this park on one coast if it has almost everything the other park on the other end has? I get that it's a Disney example, but the same logic applies.