Dublin City had planned to pedestrianise the College Green area from the TCD front to approx. where H&M and Starbucks are and turn this new City Centre Plaza into a public amenity. (An article is here.) It would have been the first and only City Centre event space and in my opinion it is the perfect location for a PROPER Christmas Market in Dublin.
But the planning authority, An Bord Pleanala, was not in favour of it because it would have a negative effect on traffic and would cause unacceptable conflicts between cyclists and pedestrians.
At the moment College Green can only be used by buses and taxis and getting taxis out of this area would – in my opinion – be a good thing.
By the way: The only chance a Christmas Market has in Dublin if it a) is in a central location and b) is organised and run by Dublin City, NOT an event management company and definitely not by DublinTown.
The next steps that Dublin City will take regarding this, have not been revealed yet.