Ok, I'm going to warn ahead that this is going to be a long post.
I can really understand tradition-ites that will complain about taking out a beloved ride, how this is a sad day for the park, yada yada yada. Yea it kinda is. One of the few attractions of this style outside the Big 2, a great storyline, great experience, great effects. A struggling park really shouldn't be looking to take things out.
But, it is an expensive ride to operate daily. So they need to find a way to cut back on the spending anyways, so a low ridership high cost ride is usually one of the first things to go. I don't know whats going on inside the walls of the main office, but I really hope someone brought up just new projectors that are more reliable, new effects that can do more with less, and altering some of the effects.
What made that upgrade for BGW hard though is the fact that UO has seemingly gone the 'next step' when they did the Harry Potter rides (will be interesting if they keep doing even more than that). DW doesn't have many of that style, but what they have they do so well. So if BGW did a Spider-man style update (improve from SD to 1080p; improve the effects; repaint interior); I wonder id the non-member/pass publid coming to BGW would have cared.
If they got to that people wouldn't have cared that are just general public goers; then updating would be a no go waste of time and money. And the ride is expensive. So you land on it's not worth it to keep the ride.
Now here's my things, if they decided it's not worth it, and they decide to gut the building; then give me something in its place. If they maintain this as an 'event space' I'll be massively disappointed in the park because that corner of Oktoberfest is a 'dead zone' in effect. You got a huge area in a major corner of the park that has no pull. There's little to slow down the people in that area other than money sucking games.
So.....long post short:
My feeling on DK coming out really depends on 'what's next'. If 'what's next' is just a big empty warehouse for events and storage....this is a huge huge mistake by BGW. You can find places to put an event space or close down another ride to build it (*cough*romanrapids*cough*).
But if "what's next" is to use the building to create a "Lugwigs Revenge" and put another ride into the building, and they are playing this close to the vest, and they want us to be surprised, then I am all for this. Whether that be an indoor coaster (Revenge of the Mummy or LaffTrak style) or a shooting style ride (like Justice League or Toy Story Mania) or even just something unexpected, then I'm for this because we shouldn't let preservation get in the way of progress with it comes to parks and finding ways to improve (within reason of course).