C
A close look at Toon Lagoon reveals a number of things that could use fixing. I do believe it is because a lot of it is going.
There is still a good possibility it is done in phases. No hurry on Dudley since they now own the IP. Popeyes is either gone in two or three years or sticks around for at least a dozen years. Building something on the old theater is definitely a sooner rather than later project.
I'd think Dudley would go first since Popeye is more popular and already has a cohesive mini-land.
If you bulldoze Dudley, Comic Strip Lane, the carnival games and the TL theater area, there's probably room for 2-3 decent-sized attractions and 1-2 smaller additions.
I'd guess the phases would be:
Phase 1 - SLoP E-ticket and Sing mini-show in TL theater area
Phase 2 - revamp of Comic Strip Lane
Phase 3 - Dudley bulldozed for family dark ride and family coaster (or one D/E and 1-2 smaller attractions)
Phase 4 - whatever happens for Popeye (update or retheme)
Popeye is just too much of a crowd pleaser to close down for 9+ months IMO and it's the one water ride at IOA that doesn't need any drastic changes.
JPRA needs some major overhauling and Dudley takes up valuable real estate (could make a dark ride or family coaster work in its plot) in a land without relevance while Popeye's space is pretty much limited to rapids ride due to its proximity to the IOA lagoon.
Once all of TL is updated or fixed, I could see a Popeye revamp/retheme, but currently, it's fine as it is.