We did Princess Lunch. Was fun, and I think DD wants to do it again next year, along with all of the others.
Best part - you don't need to wait hours in line to meet the Princesses, and you need to eat. But, you don't know which 5 apart from Ariel until you get there. We tried and tried but didn't get to see Cinderella the whole trip.
My hint for the Princess Lunch would be to get the first sitting at the first PS time for that session. For us, 11.30 lunch, arriving maybe 15-20 minutes before. When we booked the guy also offered 11.40 and 11.50, but I really wanted to be one of the first. They also say don't get there until 11.30, but if any 11.40s get there before you they may go into the dining area before you.
This is DD meeting Ariel.
We were the 2nd family to be seated and DD spent maybe 5 minutes talking with Ariel which was great. Ariel greats you as you walk down the stairs. If we were later we probably would of had less time. Then the other 4 princesses visit while you're eating in a very orderly manner.
So yes, next trip we will be doing, according to DD6 who will be just 8 then, Ariel's, StoryTellers, Minnies, and the other one which I can't remember off the top of my head.
We did Pat-E-Cake as well for DD's 6th Birthday Party. I wouldn't do it again but DD really liked it and wants to. Wasn't worth the money, around $16 each for basically a very average birthday cake that you decorate yourself. Mickey and Minnie turn up for a photo which is cool but no autograhs. Went for perhaps 30-40 minutes or so.
So summing up, if you can afford to go to character meals do so to save so so so much time lining up to meet the characters. And you get to eat at the same time.