It's not a bad idea, and one that I have thought about as well. However, as pointed out, there are a lot of fans of the attraction in its current setup. I would be all in favor of what Joonyer suggested and have multiple random locations, like Star Tours. Oh yeah, and make it High Def Digital too, just not 3D.

On this topic though, I think an UP attraction on Main Street in MK might work. The entrance could be the short alley on the right, going toward the castle and would resemble Carl's house from the movie. Once inside, the attraction would use something similar to the Soarin' ride technology to take you on a flight to Paradise Falls and back. Alternatively, they could use simulators that you would sit in and resemble different rooms in his house. Of course, along the way you would encounter Muntz and his blimp, and maybe even some of his pack of dogs.