Hi LSATNinja! Happy to explain why answer choice (E) doesn't resolve the paradox in the stimulus
In the stimulus, we're presented with two conflicting facts:
Almost all city concertgoers responding to a survey are unhappy with the local concert hall because they want wider seats and better acoustics.
Most of these same survey respondents do not want the current hall torn down and replaced, even though a new hall would need to be built to accommodate wider seats and better acoustics.
To resolve the paradox, we want to find an answer choice that explains how both of these facts can be true at the same time.
Answer choice (E) explains a potential reason for building a new concert hall in the city. However, the answer choice does not provide an explanation for why the survey respondents are both unhappy with the current hall yet do not want to have it torn down and replaced. From the facts presented in the stimulus, we do not know why the survey respondents do not want the current hall to be torn down and replaced; all we know is that the survey respondents want wider seats and better acoustics. Giving a potential reason for building a new concert hall does not explain why the survey respondents don't want the current hall torn down, though.
Although the explanation you've provided for answer choice (E) explains a reason for why the survey respondents would both want a new hall and want to keep the current hall, it does so by looking at a factor that is not mentioned in the stimulus. From the information given in the stimulus, we don't know whether the performers visiting the venues has an effect on the survey respondents' opinions on the current hall; the musicians who visit the new hall vs. the current hall may not influence their opinions at all.
On the other hand, answer choice (D) provides an explanation for why the survey respondents both want an improved concert hall but do not want to tear down the existing hall. If there is a well-publicized plan to keep the current structure but build a new concert hall, then this gives us a reason why the respondents do not want the current hall torn down: there's a possibility that the city government will convert the current structure and still build a concert hall that satisfies the survey respondents' wishes, which is the best of both worlds. If this plan that is already in place goes through, then there will be two benefits: a new auditorium, and a better concert hall. We can assume that at least some, if not most, of the survey respondents know about this plan since it's described as "well-publicized."
Since answer choice (D) gives an explanation for how both facts in the stimulus can be possible, this is the correct answer choice. Answer choice (E), on the other hand, does not provide an explanation for how both facts can be true at the same time.
I hope this helps, and let me know if you need any further clarification!