I agree that this whole show musical chairs thing is stupid. First off I don't think any of the shows that were talked about are doing so bad that they have reached the point in their contracts where the owners can kick them out. I view the Legally Blonde reality show as one last attempt to bumpt up ticket sales before the prodcers close the show on their own merrits. When the bump for the reality show ends then chances are they are going to close on their own and not because anyone is forcing them to.
I don't think that In The Heights would move at all. The Nederlander organization can't force any of their shows to move or close if they are doing solid business which In The Heights is doing right now. If it got so bad that the Nederlanders would force the producers to close the show then that would be a different story altogether.
Keep in mind as it has been said that the Richard Rodgers literally has next to no wing space so it would be impossable to put this ( what is supposed to be) mammoth production of West Side Story there.
The reason why Blonde won't move (other then the fact that it would cost them money that they don't have now) is that the sets were custom made to fit the Palace. The Palace is a musical's set designers dream because it is so big that they can do with it whatever they want and get really creative. Those sets wouldn't fit into a smaller theatre at all. The only way I could even consider thinking of Legally Blonde moving is if this conversation were to be taking place a few years down the line as oppose to today and Blonde's tour finished. Then there might be the smaller tour sets that they could use on Broadway at a smaller theatre a la Beauty and the Beast.
"If you try to shag my husband while I am still alive, I will shove the art of motorcycle maintenance up your rancid little Cu**. That's a good dear"
Tom Stoppard's Rock N Roll