My sister, brother in law, and nieces came down during the weekend of candlelight last year. it was crowded but not too bad. This event does not get publicized like it does at WDW so, it doesn't effect the crowds.
Yes there is a lunch / dinner package you can purchase but, it was pretty over priced.... I think you had to spend a minimum of $35 per person if you ate at Storytellers, and I think like $55 per person at Granville's... There were other restaurants too but, they really make you work hard to spend your money. You can still usually find a place on Main Street to watch it. Hopefully, they will have it on Main Street again this year. So much more beautiful there.