We have been to WDW about 5 times for the holidays. My favorite time to go.
We usually sit near the brigde entrance going towards the castle after leaving Liberty square. Right across from the place where you can buy made to order tollhouse ice cream cookies. It isn't a good place for fireworks, but the parade just about touches you right there. We have also stood underneath one of the pointsetta plants on main street. Like the end of liberty square better. still crowded, but not as bad.
Wendy