The were actually doing a refurbish on it when we were there in October BUT Ariel teamed up with Cinderella in Toontown, so you were still able to see her.
It was kinda nice because we only had to wait in 1 line. Since she's back in her grotto now, it will be 2 lines to see them both, (and Ariel's Grotto line always seems to take a while).