There are many good spots along the route to stand. You may want to consider what your plans are immediately after the parade. Because the parade ends up where it started, the route to the rest of the park (San Francisco, Diagon Alley, Springfield) is cut off from the Hollywood area. So we watched along the Hollywood area and then were stuck either walking completely around with the parade to get to DA (very crowded walkways) or just exit the park and walk to IOA. DH said 'let's go to Finnegan's', but no, if you are watching from the opposite side of the parade you cannot get there until the parade is about over! Santa does a little tree lighting thing which is fun, it is at the big tree where the parade turns into the NY area. Also, there are confetti cannons on top of some of the buildings along the route that kids especially seem to enjoy.
We were there the 1st weekend in Dec and people were already grabbing spots and hour early, we picked something maybe half an hour ahead. I'm sure it's more crowded now.