honestly, I think this could do wonders for it...make it look like a JP warehouse from the JP side and paint it brown on the HP side! That would easily make it much more passable in my opinion, just because (call me crazy) I like pretending I'm not in Orlando when I'm in a world class theme park.
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The problem is all they'd have to do is plant some trees or even just paint it. It's obnoxious as it is now. It doesn't 'ruin' anything it's just kinda ugly and makes JP look cluttered and when you can see it from WWOHP it contrasts the great effort they put into making Hogwarts. It would be so easy to cover it up. I mean, with an attitude like yours, why would they bother building Hogwarts at all? Why not just put it in a warehouse and make it look like that from the get go?
As for the JP expansion, the rumors are all interesting but I'd be surprised if it was any more than a few touch-ups on existing attractions, especially considering how much all the rumors have changed already.