First post, longtime reader/follower/stalker
You get the point.
I had the pleasure of working at the park for several years in ride operations. I felt I should finally lend some insight into the "What is going here?" discussion.
Keep in mind, a Dive machine does look likely, and I think there is a high chance of this happening.
1. Capacity of the Dive Coaster can fit a park of Knott's magnitude.
2. Noise isn't an issue (also keep in mind, they can sand-fill to deaden the sound if need be.
3. Market Value <---- Biggest point, No Dive Machine with the "marketability of Valravan" west of the Rockies. Which Knotts/Cedar Fair LOVE to do, (Longest Tallest Fastest Wooden coaster on the west coast. Tallest Invert on the west coast. etc etc.) It is also in the back of the park, and will actually add very nicely to the skyline of the park (Watching from the near-by 91 Freeway on the way to Disneyland (5 Freeway as well).
4. Lastly, IF THEY DO build a B&M Dive Coaster here, keep in mind the goal. They do not compete with DLR, nor do they compete with Six Flags or Universal. This is an opportunity for them to draw crowds (Extended Vacations) from people who will be visiting cough::cough:: Star Wars Land and USH new attractions that are incoming. Which kind of adds to the market value of a Dive Coaster at this point.
However, also to keep in mind. Traditionally the Knott family, and Cedar Fair in success, have a tendency to attempt to put something "New" in the park, i.e. Xcelerator. We could very well see a prototype here, or one of a kind. Im hoping for dive machine, but would not be the least bit surprised if a lower capacity, yet attractive Raptor/T-Rex was introduced here.
As far as capital, I have seen a lot of posts claiming money to be a deciding factor. That is not how the business of the industry works. Investments are made when there is a market to tap into. They have a market to tap into which will BLOAT when Star Wars Land opens, and will move money and mountains to make more money. Trying to keep this as easy to understand as possible (I work in marketing and finance).
As far as being landlocked. Knott's is actually not as limited as you may think. I believe Sky Cabin will remain in place, K remains!, and I believe whatever we see will have a layout that will encompass this tower, and new restaurant.
Another option, and honestly could be occurring right now is another flat or shuttle coaster/smaller coaster/family coaster. However, I have made my argument as to why a Dive Machine or larger "West-Coast Fury" is indeed possible.
Also! One last thing before I forget. Just because they are starting construction in April 2017, doesn't mean this attraction opens in SUMMER of 18. In this region, we are year round with all of our parks including psuedo-yearround SFMM. Example, Silver Bullet opened in December.