I think Lion King would work fine in the Minskoff, The Dutch and Hanburd productions are in modern theatres with very little frills, and they work almost better since most of the Lion King's designs are abstracted and minimalised. What i also like about Minskoff is even though it is big in terms of seating, it has a small feel to it.
But i do aggree that they should concentrate on other more 'serious' shows like Hunchback and should also seriously look at doing Pocahontas. I also somehow think that a show like Tarzan lends itself to an "Arena" style production rather than a regular theatre.
And i do think it time Beauty closes, chances are if this move does happen, they would put Mermaid there.
Dont forget, Like Aida, Mary Poppins isnt really billed as solely a Disney production, even though Aida was, they always tried to distance their name from the Disney brand by producing it under the Hyperon arm of Disney.
http://www.flickr.com/photos/27199361@N08/ Phantom at the Royal Empire Theatre