I think that’s easy to say now, with the benefit of hindsight and how theme parks have evolved - but back in the 90s, it was a solid get. Maybe not A-tier like Simpsons or LT, but definitely a strong, recognizable IP. Marvel was the riskier play at the time IMO, which is exactly why that “in perpetuity” clause happened.
Universal clearly hoped to usher in a new Ward-era Millennium revival with Dudley and Rocky & Bullwinkle films, but it obviously didn't have any impact (with Marvel ironically becoming the golden goose). Even so, we still ended up with two well-received attractions.
So no - I still don’t think calling Toon Lagoon “bad” is fair or accurate. It just doesn’t fairly reflect the original context or intentions of the land.