Rapunzel's tower is actually said to just be above some bathrooms. My guess, it since they're moving some of the other princesses to Fairytale Hall, that they'll keep Rapunzel in the Main Street Theatre, where she has been for the Halloween and Christmas parties. I'm not entirely sure on that, but the whole bathroom thing came from a cast member.
I've gotten this so many times since I posted this.
(Drew: I'm sad you weren't there! I agree, I promise we shall plan a day it can't come soon enough.)
I'm gonna deal with them all together.
I never believed the bathroom rumor. Mostly because I've only ever heard it from tumblr, and whenever I talk to anyone in the parks they've never heard of it before. Plus, there are bathrooms directly across from that location in-between the Peter Pan queue and the Harbor House. It makes zero sense to me that they'd build new ones directly across from perfectly good ones, but then again it's not my call and Disney's done stranger things. It's completely possible that that's all this area is gonna be, but I just choose not to believe that until I see them open.
I don't agree with the idea of Rapunzel staying in the front of the park, because they pulled Jasmine and Tiana from equally good locations to put them in the Fairytale Hall. Also, that would mean she's separated from her now, very real, tower and the rest of the princesses and Fantasyland. I think it would be confusing and wouldn't flow well with the story they're trying to built up in MK and New Fantasyland.
So I stand by my hope and belief that the tower will be her new meet and greet because that's what I've reasoned it to be. The restaurant is still pure speculation. I may be completely wrong and eating my words later, but we'll all just have to wait and see. :)