I went in early June. Like you, I went back and forth on whether I wanted to keep the reservation or cancel, but in the end, we went.
As goofy4prez noted, tables are no longer reserved. And it's not as simple as getting their early to get the best seats, because there are different sized tables scattered throughout the party area. My son and I lucked out and snagged a table on the railing, even though we arrived later, just because of the table/party sizes.
There is some room to stand along the railings, on the far left and far right. But in the center, the tables are all the way up to the railing, so no standing room.
As the show started, I looked around and noticed that even those at the back tables remained seated. So maybe the view is acceptable, even from the less desirable tables? I didn't pay attention as to whether they stood up/moved later, though.
The view from the terrace is off center, as you know, and from where I was sitting, there was a tree obscuring the lower right part of the castle during Celebrate the Magic (that's the name of the show projected on the castle, right?).
As far as the desserts go, they were tasty, and we got our fill. But the variety is not as great as it first appears. I think there were three different types of chocolate covered strawberries, as well as numerous "different" types of cupcakes (in the end, they're all just cupcakes). Plus a few unique items, ice cream, cheese, and maybe some fruit and crackers.
I thought the Wishes party was well worth it at $25/pp. I paid $50/pp in June, and I am not sorry I did. But I understand it's now $80/pp, and I don't think I could justify it at the current price.