Our last trip was may of 04. DD was not quite 2 and DS was 4. For our family this worked well: Breakfast: we ate in our room, things I bought during our grocery stop with Tiffany towncar. Then we usually arrived at the parks between 9 and 10am (except for the day of the emh for AK- as this was a priority to ride the Safari in the early am)
Our family loves the fireworks shows so we would power through the afternoon and stay till then. In other words when my DD needed a nap it happened in her stroller usually while in line for an attraction. She has always been a cat napper though. There is just too much time consumed by getting in and out of the parks and back to our hotel. We have tried going back to the resort for breaks and found that sleeping in a little later is better and gives us more park time. There are lots of things to do at the parks that give you a little "break"_ the shows at all the parks or strolling around the tree of life at ak, there's tons more! As for lunch we had ps's for character breakfasts at the last possible seating(like 10:45 or 11) and found it to be less crowded and justified the price since it was really lunch. Then we would have a light counter service dinner wherever we were. But I found the humidity caused my appetite to vanish until I got back to room and the air conditioning.
Bottom line is have fun and be flexible. Try for one Ps every day or every other day. If your kids are done for the day, they are done and just go back to the hotel and plan for the next day. You know a kid is tired when he wants to leave Disney!
Oh - our family likes the parades too, I make sure we make these and if you get a good seat, hey it's a break!
Have fun!