Reserved yes, preferred no IMHO.
You get your choice of 3 places; Hollywood & Vine, The Brown Derby and Mama Melrose. H&V is a buffet while the other 2 or TS.
Through the package, you get to enter the theater through a special entrance abotu 30 minutes prior to show time and get a designated section to sit. The issue there is that there area is nowhere near the best seats so the real value add is that you get to get in before everyone else.
If you are trying to get better seats than I would suggest to nix the package and get to the gate 60-90 minutes prior to show time. If you do opt for the package, you might get lucky enough to jump out of the reserved area and get better seats.