You could probably see the lights, but not a very good view. The distance would make it harder to see, plus it's down stairs, which is level with the water, and the parade is actually higher up.
We ate there around 5:00. I wasn't much impressed with the food, although the character interaction was nice. And my DD loved the cotton candy they give you after dessert. She took it with her. The food was a little on the weird side and I go for more normal food.
Donna