^Yeah, the height restriction is a good point that I had forgotten about. That really does tilt the favor in the wing coaster direction for a park like this.
As for the location, DW has things a little bit different because the coasters basically dominate the back of the park, bringing people up either side of the hill that WE is on. That creates more of a loop than at SDC where they are off on random spurs in one corner. I'm fine with it either way, I just assumed they would try to even it out a little. Keeping the coasters "contained" would be good for the heart of the city as far as I'm concerned.
That's some tight spacing over there though. You could put a station behind the waterfall, or even in place of it, but the track is going to have to play with PK and Wildfire a bit. I also wonder how they would be able to fit anything without completely locking out that expansion point. I always assumed they would eventually try to build down that way somehow, but maybe that was out of the question already due to the slope and the land they have on the other side to work with.
I'd hope they would keep the waterfall. It might make a neat queue line area.