There has been a good deal of discussion on other threads regarding what might be about to happen with Dragon Challenge. This is what I remember reading, not necessarily facts.
Originally the rumor was that DC would get a Hulk level refurbishment to start sometime after Hulk was done. It was then mentioned somewhere that extra space would be freed up in the DC area to add to Hogsmeade. Speculation after that has been since the area is so large the attraction could be removed and replaced with something better themed to Harry Potter.
The question is what will happen and when. The dragons don't duel anymore, but it is two coasters that have a large combined capacity. A lot of HP fans are not coaster fans. The attraction is just an overlay of Dueling Dragons and is not being duplicated in any other HP land at any of the other Universal parks. One member had said even Rowling is not a fan of the ride as it currently exists.
From Google maps DC looks like it is around 40% of the total Hogsmeade area. Universal could do quite a bit with that much area.
Anyone know the facts, time frame or budget?