I've been there twice. I went in Dec 05' with my mom and food was OK, character interaction was great, and we asked for and received a wonderful table for two facing the MK. At that point I would definitely recommend it.
However, I went back just a few weeks later in Jan and had a very bad experience. My 9 y/o GD and I arrived early, just before O'hannas opened and checked in, requesting a table by the window facing the castle. Even though we were the first ones called, we were taken to a little table in the back. When I asked if we could have one of those two tables for two next to the big window the hostess just said 'NO', no reason given. We were then told that Lilo was sick that day and all that would be there were Mickey, Pluto, and Stitch. OK, no problem. When the waitress came I told her we did not want the pineapple bread, but she brought it anyway, along with a small plate of fruit and OJ. When the skillet came it was cold (and I mean cold). We finally got her attention and she apologized and took it back. However she never returned. Just before Stitch got to us, the kiddie parade started. We assumed Stitch would resume visiting where he left off, but he apparently forgot where he was and missed us along with two other tables. We caught the attention of another waiter who went and brought him back. Stitch posed for a really quick picture, then took off again. We still couldn't see our waitress anywhere, so finally caught that same waiter again and seeing we had nothing to eat on the table (except the pineapple bread which we didn't want), he went and got our waitress. She apologized and said she had forgotten to bring out our skillet, but would get it right away. No thanks, we had been in there for over 1 1/2 hours and just wanted our ticket. I assumed she would have given us a discount, but she didn't. I couldn't believe it. My GD begged me not to cause a scene, so I didn't. I just left the money on the table (with no tip) and left. I still can't believe I paid that much for 3-4 bites of fruit and OJ (and just saw three characters). FYI- other people around us was talking about how the waitress disappeared. The table right next to us even offered us some of their skillet, since we never got ours.