I don't think a Lost attraction wouldn't work simply becuase it would require to much knowledge of the series. Anyone who hasn't been watching Lost on TV would be, well, lost.
Still, they really should do something with that island. There was talk some years ago about turning it in a Myst attraction. That might have been cool, but it might have excluded anyone who hadn't played the game. Having some sort of upcharge interactive adventure out there would be great, but it could only work if you kept the number of people admitted down to a reasonable number.
The island was original Pirate themed (before it became Discovery Island). That still strikes me as a good idea, especially for kids. Think of all the trreasure hunt type of activities you could send familiies on.
Another I idea would be to turn it into the Island of Mystery. You could place illusions, fog machines and various special effects all over the island. That way, you could give it the feeling of the island from Lost without the need to know the plot from the show. There could be mystical quests to solve, scary caverns to explore, magic shows to watch... the possiblities are endless.