The LSMs don't cover the entire strip though like on Blue Fire, so they probably won't be anymore terrible than the other two Mack's with this launch setup, but there won't be any force on these launches whatsoever.
Unfortunately, given Tower of Terror's minimal footprint, I don't see Dreamworld replacing it with anything. It's essentially taking up an extremely long but narrow plot of land suitable for hardly anything else, and since its construction the railroad as well as Mick Doohan's MotoCoaster have been located right next to it. This park now has 3 launch coasters, so I don't exactly see Dreamworld replacing Tower of Terror II with another one - or even a record breaking coaster, for that matter - as parks have now moved onto the most unique ride experiences, rather than the tallest, fastest or longest. Still, to lose one of the 7 operating giga coasters worldwide would be a bit of a bummer, especially the only one in the Southern Hemisphere.
In orange, you can see the outline for the space that this MACK Rides Launch Coaster will use. This image should give a better idea as to how little space Tower of Terror II took up, and why I don't see it being replaced with much (if anything at all). If Dreamworld plans on building a coaster in its spot (the yellow being the best location out of Tower of Terror II's footprint), I wouldn't expect more than a family coaster. The station is right next to their DreamWorks Experience land; the Vekoma Family Suspended coaster and Zamperla Air Race are clearly located to the left of Tower of Terror II's launch tunnel and entry area. A large, circular flat ride such as a star flyer would be better suited for another location in the park, unless Dreamworld wanted to do away with those trees surrounding Tower of Terror II.