The reason I mentioned the waterfall is that it could be themed to the lumberjacking area very easily (like Thunderhead at Dollywood) That area is already partially cleared, with Buzzsaw Falls gone there is an opening for a lumberjack ride (other than AP), the area is underutilized (with a dead waterfall), and it keeps the teenagers busy on that side of the park with other thrills located nearby. It may even be more level, which would make is easier for a coaster like OzCat to be located there with minimal modifications. I'm not sure what the traffic flow would be like.
That being said, obviously something may be going on at the Waterboggan, and with SH removed, the rumors seem to be pointing in that direction. I'm not a fan of the roughness of the old woodies, but I do like the way they look - as long as they are left looking natural.