This is very exciting news! Can we all be adults here are discuss the Harry Potter Island and not go into a whole thing about Disney this Disney that. I think all of us on these boards like both parks, or at least most of us.
The way I see things is why bother keeping the Lost Continent? I know, I know some love the island, but the whole theme was very medievil/Harry Potter anyway. The only thing there that I've enjoyed is the Dueling Dragons and the Flying Unicorn. The themeing is fantastic, but Poseidon's Fury and Sinbad are not the best attractions imo.
I'm guessing Lost Continent will be reduced to Posidon, Sinbad, Mythos, and some of the shops leading up to the Dueling Dragons. The castle in the Dueling Dragons was always great to walk through, but could be even better rethemed with Harry Potter stuff. They could lose the Flying Unicorn, but I guess it could be rethemed as the Potter books feature a unicorn. I'm guessing those two rides being re-themed, plus a new attraction will be in the island. The new ride I'm thinking will probably be a dark ride, possibly using wands - maybe using the spiderman tech and MIB? We shall see.
Also for those wondering about a direct route from the studios to islands, I think that would great, but they want you to walk through City Walk to try and get you to buy more things, or eat at the resturants.