If you're talking about critical reception then I'll just take a "wait and see" approach. A streaming show is new territory for Square Enix. Who knows, maybe we may get a Square Enix + Walt Disney Animation Studios collaboration for Kingdom Hearts. From a commercial standpoint, an idea like this is just too nostalgic not be a commercial success given Kingdom Hearts' popularity.Think KH would bomb as a Disney+ show given the nature of the series. It'd just get dumbed down and over-explained for kids, and the edgy Final Fantasy stuff would never make it in.
There are rumours that Oswald the Lucky Rabbit is getting his own Disney+ show. Maybe Disney wants to give him a modern look so he isn't stuck as the retro Disney character, and from there, Oswald and his cast and be cross-promoted to other Disney properties.Disney doesn't even know what to do with him anymore.