Ever since I first heard about the World of Color, I suspected that this new show is intended to replace Fantasmic. From the descriptions and video clips I've seen it looks like it's a similar experience, except that it has no costly actors or any of the associated costs of wardrobe, makeup, training, health insurance, accident insurance (stunts, working with heavy machinery), finding substitutes and replacements, etc. Instead it's just a capital investment in pumps, lights and projectors (which Fantasmic has anyways) and then the ongoing costs are only a few techies, electricity and fireworks.
Probably the Fantasmic dragon also has nothing as comparably complex or expensive in WoC either. I'm not claiming it's part of a sneaky plot or anything, but I could see the beancounters at Disney thinking, hoo boy that Fantasmic show is good. But really expensive! Suuuurrre would be a pity if an "accident" happened to that dragon thingie. Let's declare that ongoing technical problems prevent the dragon effect from working reliably then we brighten up and say, hey! How about bringing in that new show from California instead! People'll go wild over it. Err, except for all those face actors.
From what I gather, the WoC show also is kind of heavy on recycled video clips and maybe music too, so it could be an all-round cost saver. Kind of sucks, but maybe this will help keep down the cost of visiting Disney parks.