I don't know what nostalgia factor Alex is on about. The tykes who love Peter Pan have no idea it wasn't built in 1998, nor any clue that the movie it's based wasn't released direct to home video in 1986.
It's beloved because it's a flying ride.
I'll grant that if it had competition, that might be another story. If there were an Aladdin flying carpet ride over Agrabah, an UP ride over Paraside Plateau, and a Dumbo ride soarin' over Florida all giving Peter Pan a run for its money, the populariy of the Pan ride might be less.
But while it's the only flying game in town, it remains arguably the most popular ride in Disneyland. Well, at least the most difficult ticket.
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