That would be excellent of course...
Although Balto is not a Disney production, so the chances of seeing this happening are next to none.
Another big problem I can see is that they seem to repeat the same "worlds" in every game, as if Disney had only created 10 films...I mean, they've included the SAME Aladdin, Hercules, Nightmare Before Christmas, Little mermaid, etc... worlds in at least 4 of the KH games, and ALWAYS accompanied by Donald & Goofy - aren't you tired of that? I am.
(Personally, I would be CRAZY over them doing a Talespin world...even though I know it will never happens either

They could even do a whole Kingdom hearts based of the characters from their Disney Afternoon series...there is enough material for that. But noooooo...
And don't tell me that Tron or Nightmare before Christmas were more famous than these.)
Another another problem is that they seem to care less and less about Disney, see the recent KH games released to see that the Nomura characters take over all the scenario and the Disney characters are only secondary...(scenario which has become so confused starting from the 2nd episode that I went through the games only for the Disney side of them)
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but that would also ruin the setting of the game.
Errr...why exactly? Don't you think Pirates of the Caribbean or Tron are more "out of the place" than Balto would be? Yet, they were included...