I think that some times when we talk about rumors panning out or prooving to be true or untrue, we miss the fact that it is a dynamic company and ideas are introduced, worked on, changed. I think that Jim Hill is really bad about that. One of his favorite topics always seems to be "so you like the new X (movie, attraction, show, etc.), well wait till you hear about what you missed, because all along it was supposed to be Y (an earlier idea for the movie, attraction, show).
I think that they were really playing with the idea of the villains land/ride, but I sort of doubt if a 5th gate for villains was seriously on the table for long. With the success of the merchandise at MGM, I think that they were probably really exploring it. I think plans followed two main paths, based on the little bits of info that have leaked out-
1. bald mountain, the idea that there would be a log flume sort of ride where the 20K lagoon is now, which would use technology similar to CAVE to tell a 3-D effect story where we stumble across a meeting of all the villains and they give chase to us. With a gift shop and a snack bar, this area becomes sort of mini-land like toon town, so that might be the source of the separate land rumor.
2. A replacement for the Great Movie Ride in MGM, also using cave or 3-D technology, Mickey stumbles on the villains and they give chase. Same idea, different location. This rumor posits that the studios are more of a suitable location for the attraction.
I bet that both of those ideas did get raised, pushed, discussed, revised, submitted, refined, shaved, focused, all those things that ideas do.
I also think that these ideas eventually wound up as.....Mickey's Philharmagic. Budgets get shaved, and new parks get opened in Hong Kong, and you need things that can be repackaged easily - so how about a 3-D movie, and instead of a log flume through a CAVE you get get special effects in a theatre -
Of course I could be wrong, but I really suspect that Mickey's Philharmagic is the off spring of Bald Mountain.
DR