I think I'm going to start calling this potential expansion plot the Loch Lomond Area (after the body of water it encompasses/borders). Though I know it's a controversial portion of the park to target for major future development, it feels inevitable to me that a good chunk of it will be used eventually. The questions, in my opinion, boil down to how, when and what, not if. Given that Festa Field and Festhaus Park are now taken out of the running, I'd say this area is looking more and more like one of the most obvious destinations for a massive future project.
Personally, I don't care about retaining a tree buffer around the England parking lot. I would much rather a coaster border the parking lot than rob hamlets (or the entry area) of their charm (visually and audibly). My vision for the possible development area looks something like this, with the red area being the core, potential Loch Lomond development area, yellow outlining additional, potential, mitigatable areas depending on development type, design, etc, and blue representing potential ways to access the site from inside BGW (assuming the plot is used for an in-park attraction).
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Assuming we are talking about a major coaster here, my preference would be to leave the Killarney Sim Building alone. For a park that is continuously trying to expand their operating season and capitalize more and more on their incredibly popular, colder-weather seasonal events, filling a valuable, versatile building with a weather dependent, indoor/outdoor coaster makes no sense to me. I'd view that as a massive waste of an invaluable resource.
For guest access to a coaster, I'd much prefer any if the other options I've notated in my map above. The three on the right are certain to be the most controversial and I understand the hesitation. I do believe all three could be accomplished tastefully with minimal impact to the vibes of their hamlets though if executed well. I think the biggest obstacle those three options face is actually logistical. There isn't any current service road access around Loch Lomond. If a coaster station went into this area, we'd likely need to see a setup like Voltron at Europa where the maintenance and train storage facilities are at a remote location mid-ride.
Given the difficulties of the three options on the right, my favorite options are the ones on the far left—whether it be relocating Eagle Ridge (easy and may be a good idea regardless) or just building a ride plaza/station area off of the existing pathway next to Castle O'Sullivan. Both of these options offer easy, direct guest access as well as easy maintenance access.
One other thing I'll say about the Loch Lomond site: The north end of the site near the satellite parking lot tram loop was already IDed by the park in the Sesame Place Williamsburg plan as being an area for future expansion. I've always read that as the land being considered for something like a resort or other pre-turnstile area/attraction. I definitely think there's a significant possibility that at least a large chunk of this site will see a coaster one day, but I also believe that non-coaster development opportunities are very likely on the table for it as well.