Haven't been to CG, but I have been to Narcoossee's; an absolutely awesome meal and dining experience.
You can see Wishes from the deck there. They'll dim the lights and pipe in the Wishes music/soundtrack for the show. You can also see the electric water parade either from the deck or your table as Narcoossee's has a wall of windows overlooking the Seven Seas Lagoon. My nephew really enjoyed this parade. It comes close enough, is colorful and changes right before your eyes.
Not sure where you are staying, but the boat ride from MK to the Grand Floridian is really nice, peaceful and was a great way to start our dining experience.
Narcoossee's did personalized menus for our 6yo's bday. We didn't arrange anything, they just paid attention to the notation in our reservation and had a birthday button and personalized menus waiting for us.
Check the menus. CG is somewhat electic; won't appeal to everyone. Both are heavy on seafood, Narcoosee's being a bit more traditional. I don't really care for cheesecake, but the Almond Crusted cheese cake at Narcoossee's is as good as you'll read about: one of the best desserts at WDW. Quantities are great at Narcoossee's as well. I was not able to finish my Surf 'n Turf meal and shared a kids dessert with my nephew (tasted both his and my Mom's as getting my own would have simply been overkill and a waste, even on the DP).
Being at the Grand Floridian is a special atmosphere to mark most occassions, esp. one as special as a 35th.
By the way there were lots of well behaved, but not stifled kids at Narcoossee's during our trip last summer. Our 6yo was quite content and I think the 2yo would be just fine too. The deck provides a nice "time out" location with plenty to observe or just hang out for a bit.
Narcoossee's it is for me. Food. Service. Atmosphere.