You guys have brought up great and valid points as to why IO should be brought to either the Imagination Pavilion or the defunct WoL Pavilion. But you seem to have forgotten the new edict from the powers that be that all future additions should be as out of theme and place as possible. Like, is the best place for Big Blue Aliens in a park about the fauna of Earth? The best place for the fictional country of Arendale is obviously the Norwegian Pavilion. And the best place for super expensive DVC rooms is blocking the view of the MK from The Poly Beach.
So therefore I believe the most logical place for an Inside Out attraction would be in Dinoland@DAK. If not there, maybe in the Chinese Pavilion at IPcot.