This could work, but the only way I would see them doing this would be like this:
View attachment 7241
The full attraction ride would be on the 2nd level (much like the original plan), but the ground level will be split in half with the queue and a dining location on the bottom (again, much like the original version). This would all them to build a large enough tunnel leading directly from Universal Plaza to DM: MM. So that sight-line would not be lost.