Almost everywhere is kid friendly dining in Disney World, that's the beauty of it! There are very few places that a family with young children would feel out of place, and even those places do get children.
My kids liked Cosmic Rays this past time... they loved the cheese sauce that they dipped their fries in. I wasn't particularly impressed with Crystal Palace this time, but we only got to see Tigger, and I feel like you pay for character interaction at those types of meals. Pecos Bills is good too, the same as Cosmic Rays.