I'm indifferent towards Toon Lagoon. I enjoy the music/ambiance and all the little water features throughout the land. I get a kick out of watching people spend money to get complete strangers soaked at the water cannons. I used to love going on Dudley before they put in the stupid lap-bars, as you used to be able to get some serious air time.
However, very rarely do we do Popeye because you get absolutely soaked. And then there's the eye sore that is Toon Lagoon Theater that just sits there year after year wasting prime real estate...
So while I don't see a complete overhaul being necessary, Toon Lagoon is really a land we just walk through to get from Marvel Super Hero Island to Jurassic Park/Kong.