The transforming of the world into a place devoid of all things even mildly unsavory to "family values." The world thus becomes as a magical fairyland, thus it resembles a pointless Disney story. It is important to note not only the contribution that the word "Disney" makes to "disneyfication," but also the contribution that the word "fiction" makes. The "-fication" root is, as you will notice, only one letter removed from "fiction," which provides extra emphasis on the unrealisticness of things that have been disneyficated.
The soccer mom's efforts to have Hooters shut down was part of the larger disneyfication of the formerly tolerable suburban neighborhood.
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