Quoted from the article.....
The new, "seventh island" would feature reconstructed and rethemed attractions, and all-new ones, Scott Trowbridge, vice president of Universal's Creative Studios, said in an interview. The Hogwarts castle and locations from Rowling's Forbidden Forest and Hogsmeade village will be created as backdrops to attractions, shops and restaurants.
Three-time Academy Award-winning production designer Stuart Craig, who designed sets for all the Harry Potter movies, leads the "Wizarding World" design team.
Much of "The Lost Continent" island, including Universal's award-winning Mythos Restaurant, will be retained as a separate themed area, just smaller. The island would remain open during construction as well.
I do wonder where they get this information or if it's just speculation.
It doesn't seem to make any sense if Lost Contient is just Mythos and Posiden's Fury. That's WAAAY to small of a land for it to even be considered an "island." So I'm not sure I believe at this point that Unicorn and Dragons would be part of Potter.
It WOULD make sense that Sinbad was re-themed to Potter and that area with the fountain became the entrance to the new island that is built behind the theater in that parking lot area.
This should be a very interesting development.