We did this two years ago and it was a nightmare. You go expecting Christmas cheer and what you get is a bunch of angry, pushy people trying to get through completely packed streets. When we got there they were at capacity and closed to anyone except those who were returning to the park from an earlier entry or premium annual passholders. It took us 45 minutes to get from the front gates to the front of the castle. Never again!
You can hang out at Downtown Disney. Spend some time at ESPN Zone, see a movie, have a character brunch at Goofy's Kitchen (it's all booked but they take walk-ins), there is usually a special brunch at the hotel.
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