This is a very interesting topic - I hope it goes on for a while.
My kids are going for the first time, so I don't know what would be the best introduction to Disney World for them. My daughter just recently got over being scared of costumed characters - like the cow at Chik-Fil-A or a neighbor in a Spongebob suit at the school luau party!

I think she may need to be "eased into" Disney characters, so a character meal is probably not the best choice. But I want them to feel like they are at DisneyWorld, so Disney theming would be great for dinner.
I don't want to just to Downtown Disney shopping, so I'm totally confused

We're thinking Boardwalk area or maybe take our chances and go to CM, and ride the monorail to oversee MK to get them psyched for the next day.