John Reilly and the rest of the new(er) corporate team seem to be more invested in seasonal festivals and events than anyone was right at the time of the merger. It feels like they really want things to change, but as always their budget is limiting what can and can't be done. If they can actually get through this park portfolio optimization and continue to pay off the massive amount of corporate debt then I think we will see more improvements. The short answer to "Why continue to host Carnivale if it's watered down?" is because they already had all of the assets for it sitting in storage. I'm hoping that this being the last year is because corporate has a plan for something new to come next year.
I, personally, enjoy Grand Carnivale for the general atmosphere but wish they would be able to host more things throughout the day. The watering down of the event over the past 3-5 seasons it's been held is very evident, though I also have to imagine that it's reputation has also been stained by everything that's happened during its tenure. It's clear to me that there were major plans in place during the 2019 season that were entirely stopped by everything that followed. We first saw Grand Carnivale in 2019 alongside the renovation of International Street and the expansion of other events (Haunt alone received four new scare zones and a new show that year). HalloTween debuted as the early-teenager Halloween event. The pandemic ruined any plans for events in 2020, including whatever remained of The Great Pumpkin Fest and HalloTween. Tricks and Treats Fall Fest was introduced as the filler event and proceeded to take over from the other two family events in 2021. 2022 brought us the wonderful 50th anniversary celebration, and then it was back to the status quo in 2023. Halloween Haunt received upgrades in 2024 with the new interactive lanterns, and received two new experiences in 2025 with Order of the Dragon and The Conjuring: Beyond Fear. (I'm still a little upset that the Tower Gardens interaction points were removed for 2025.) If the corporate team succeeds in making new festivals happen across all of the parks then I think we'll see some good results, but they need to make sure that whatever is put on has more staying power built into it. Either way, those are just my thoughts on the matter.