I would prefer Cape May.
Your little ones would prefer Chef Mickeys.
Cape May has good food and a relaxed, vacation-y atmosphere. The seafood side of the buffet is the big draw for me (....mmmm.....crab legs....) but the 'basic American' stuff was pretty good too. There are no characters at dinner.
But unless the kids have a problem with the characters (and some do, especially with the non-face characters) then meeting the Fab 5 at Chef Mickeys is absolutely the way to go.