As the posters noted, the parade stops in two locations on the route for a "party". We sat on the steps of the American Idol attraction last month. The parade stops just before the Hat and does a 10 minute set. Then they proceed to the second area. We were positioned in the middle of that area.
The parade is strictly Pixar themed. The first section of the parade is Toy Story Themed. The float, characters and CMs are all in that theme. Between the sections are either a trampoline float or a cones that carry scooters or unicycles, etc. The second section is Monster's Inc themed. This stopped in front of us. Each float is lead by a Green Army Man, that encourages the audience to participate. The Monster's Inc float had all the usual characters. They pulled out children for certain dances (YMCA, Celebration, ROCK in the USA, and the Marcerena, etc) The third section is Bug's Life. We could see that area by the Hat.
The finale brings out the characters of The Incredibles on the tops of floats, who dance along.
It would be easy to position yourself for a section if your children had a favorite. We were very pleased with the Monster's Inc crew. There was plenty of characters, but I noticed several young children being afraid of the large monsters.
At the end of the parade they throw nerf balls into the audience.
It was fun, but we wouldn't go out of our way to see it again.