I really don't understand your objection to the facade idea. The facades wouldn't really be using forced perspective - they'd be two story facades depicting two-story shops and houses. The street between Mayhem and Blast is no narrower then that between the cafe and Blast, where they are currently installing exactly the kinds of facade's I'm suggesting.
Honestly, as much as I kvetch, I don't think keeping the stages or doing a fairly minimal makeover of the area is particularly egregious or bothersome. What I do think is a fairly big deal is just how lazy the work on the exteriors of the stages has been. The Spirit-Halloween-evoking awning they've put around Blast simply looks bad. Sticking up facades - in other words, doing more or less what they did with Simpsons and the Minion Cafe - should have been the absolute least a theme park of Uni's caliber would do, and would have resulted in a pleasant, cohesive new land done quickly and on the relative cheap.