Jim MacPhee started out as a parking attendant at MK back in 1971 and has done many other things while working his way up. If there's anyone of the suits at Disney who knows exactly how vital that Main Street East backstage area is, it's him. So much goes on back there with this being the backside of the Ice Cream Parlor, Starbucks, Pandora, and other stores, as well as being where many street vendors go to restock and there's also an entrance to the Utilidors there.
I'm unsure that building back there was actually all that good of an idea to begin with seeing as I really don't know how they would've dealt with finding a place for all of that. That said, i'm still unhappy to hear it's not happening as MK needs an enclosed theater.