I don't know yet this even is going to fail - there are a lot of people who spend a lot of money on things I think are foolish, but its their money to spend.
BUT - I do wonder if this event would be doing better, or would do -even- better in the future, if it weren't for all the price increases and cuts at disney recently. The entire cost of a disney trip for a week has gone up well over $1000 for our family of 2 (just 2) in the last couple years, and thats not including this year's increases.
Ticket prices up again, food prices through the roof (increases as much as 35% this year alone, for the exact same food, though rumors are chefs have been told to decrease portions and cut quality). If my trip is costing me $1000+ more than it used to, I am going to be less likely to splurge on things like this event. On top of that I imagine even for first timers, maybe even MORE for first timers, with the much higher cost of a trip, such a splurge (when they don't really know or see the difference) would be even less likely.
I mean, who is this geared towards? I would think this kind of even would have to appeal more to repeat guests than first timers. First timers are usually just enamored with WDW, they don't know to book their fast passes or their ADRs let alone know/see the value in this kind of even. I still remember "planning" (compared to how we plan now we just winged it, we still look back on that trip and shake our heads a bit) our first trip - I didn't even look at any special events, dinners, desert parties, access, nothing. Was not even on the radar. If for some reason a first timer had this event cross their radar, I imagine first timers would look at their trip invoice and say "I just spent $1600 on tickets for my family of 4, why am I going to spend another $600 for 3 hours ???" - just can't see the appeal to first timers who don't know the value of the event. That leaves me with repeaters - these are the people who are going to have seen the massive increases in prices over the last few years - and I think they are going to be less inclined to be spending even more, on top of the much more they are already spending.