Hey Booth22:
Not sure where you got your information. First, Club 33 "took" part of the Gallery almost 2 years ago. They pushed out the back of their kitchen pantry in to a closet in the Gallery. It's about 2 feet of space.
Second, the suite is not for traveling Disney executives. As someone who works at the resort hotels, Disney executives rarely stay on property. If they are on property for meetings, they either go home at night, or travel back to Burbank to be closer to the studio and the executive offices up there.
The suite is being designed to be a sister suite to the castle suite in WDW. The WDW castle suite is part of the YOMD and guests win a night's stay in it. It's been suggested that this suite will take the place of the MMPH at the DLH. As you know YOMD has been extended through 2008.