Our 2.5 year old had a great time in this area - especially the water play area right before you hit all the rides. We knew in advance that he'd want to play there so we brought spare clothes and just let him go nuts. He got completely soaked but had a wonderful time. The rides were all very cute and appealing for little kids.
Oh yeah...check out my trip report from September if you want to see how wet a kid can get.
We got so many nasty looks from parents who didn't come prepared for it, and had to drag their kids away while they were saying "but that boy gets to play...."
Love love love bug's land!
DS went on Heimlich's chew chew train 8 times in a row in December. And that was just on one visit to bug's land...I've lost count of how many times I have been on it. In a row. I think I'll start a count; there's a guy on the Theme Park forum that just hit 1700 rides on Expedition Everest, so I think I'll start the count for Heimlich's.

Note: the signal to the CM for "can we go on it again without getting off?" is to put your hand up, point your index finger with the rest of your hand in a fist, and circle it like "around", with a questioning look on your face. Sometimes I wish I didn't know that...
Word to the wise....on the little bumper cars, it's a rough fit! I'm not tiny but I'm not drastically big either, and my whole body goes into a charlie horse trying to contort myself so I can push the pedal for the ride to go, while on it with DS. DH can't fit in there at all with DS, the restraint is up around DH's armpits. And no one runs into each other anyway (unless you get some rowdies or a big family), so it's not really "fun" anyway, IMO.
We haven't seen the "tough to be a bug" show yet, I hear it's pretty scary for some kids, and so far I haven't wanted to show it to my boy yet. Maybe this trip, maybe not (it's his 4th b'day trip and his 5th total trip to DLR!).
We love bug's land so much more than Fantasyland....