I grew up with Kingdom of the Dinosaurs, so I never got to experience the original Bear-y Tales ride. From a purely historical point of view, I think it's an important part of Knott's Berry Farm, so I like that in some way the legacy lives on. I think the new attraction misses the mark though. Maybe that can be blamed on Voyage to the Iron Reef, as it was more cost effective to essentially reskin that ride than making an entirely new attraction.
It obviously has some dedicated fans. I think the restaurant idea is fine. I can't remember the last time I've eaten at the Johnny Rockets (or any Johnny Rockets for that matter) and in my opinion the last handful of original restaurants they've built have been pretty decent.