As someone with personal knowledge of the project, it is not shameful to turn the Times Square Theatre into a shopping and dining area. If you understand the logistics, you would know that it is nearly impossible to turn this space into a Broadway house again.
The Times Square theater does NOT have any access to 43rd street. It's only entrances are on 42nd. This means all load ins/outs would have to occur on 42nd St, where a bus lane sits on that side of the street. The logistics of doing this are a nightmare for productions, and every load in/out would incur greater than average costs. The ORIGINAL version of this theater did have egress onto 43rd, but when the neighboring Lyric was created, the architects actually combined two former theaters into one and "landlocked" the Times Square Theater on 42nd St. (Regarding the American Airlines Theater: yes it does have 43rd access for load in/out).
But several elements of the theater are historically landmarked and will be preserved in the design. These include the façade of the Mezzanine and balcony boxes (similar to how the AMC Empire 25 retained those structures in their building, but these will have elements of the historic architecture still intact) and the Greek-style columns on the outside of the building (the plans for that level of the theater actually include a glass floor which will extend a few feet beyond these columns, allowing people to step out over the side walk and look down at the pedestrians below). Most exciting for those of us that work in the area: plans also include space for a rooftop restaurant and bar, which could be a much needed post/pre show food and beverage stop in an area that is really barren for such places (remember when Urbo tried to fill that void for a hot minute? Alas).
I promise you that returning this space to a Broadway house again was never in the cards. The few theater organizations that contacted the New 42 to inquire about the logistics of such a possibility years ago immediately balked at the price tag of such a venture. A retail/dining area with a modern look that retains the historical elements is truly, imo, the best outcome for this space. It could have been a generic skyscraper, and at several points almost was. It could have been "Broadway 4D" (which could have been cool, but how long would it have lasted really?) before that imploded. This is the best version of any plan for the venue.