I would NOT recommend Crystal Palace. This was the worst Disney dining experience I have had in over twenty years of going to WDW yearly.
We were a party of seven (two first timers, a mom and a 7 year old) and ate lunch there last May. Even though we had reservations, we still had to stand outside in the 90+ degree heat for about a half hour. Once we got inside to eat, it took over two hours for the four characters to come to our table. For the first timers, two hours was way too long to wait for characters, so they left (after seeing two characters in about an hour) to go enjoy other areas of the MK.
In addition, the food was not that good - lots of carbs, tough steak from the carving station, etc.
I spoke to a manager who basically could have cared less. He and other CMs there said it takes about 1.5 -1.75 hours to see all four characters. I said that was ridiculous considering how many people want to eat there (based on how many other guests were waiting outside). Also, for someone who has a limited amount of time to visit the parks, taking two hours for lunch is way too long for children and for adults.