You get reserved seating, meaning they let all the package purchasers in before they let stand-by people in. You still have to wait in line, and you don't get an assigned seat.
You could compare it to the Fantasmic package, from that standpoint.
We really enjoyed Tutto and would eat there again - it was one of the best meals we've had at Disney.
And now that I'm thinking about it, I should mention - there are (or at least have been) 3 showings of the CP each night - your meal time and show time are connected and you don't get to pick any time you want for your meal, just within a particular block of times. I know that if you wanted the earliest CP, which is around 5:00, you had to take a pretty early time for your meal and that was considered lunch instead of dinner (and it was less expensive as well, I believe). We did the 8 PM CP and had dinner around 5:30, which was close to the latest seating time you could get, if I'm recalling correctly.