We went last week. The seats are on the raised promenade above the riverside area, between the stairs. (below you, you can see those people who are on the lower promenade. They have generally been there for 2-3 hours holding their places; at least, they were when we were there on Spring break.) There are 2 different sections. One of them, and the seats that go the quickest when you check in and choose your seats, seem to be pretty close to the front of the water screen that is on the right as you face the island. The other set of seats is more in between the two water screens, but you can still see the projections just fine. We were in the second row, and although we had a big guy sitting in front of us along with his wife and two small kids, my daughters declined to switch places with me: "I can see just fine, Mom, I just have to lean a fraction once in a while." The railings don't block (they have tweaked the seating arrangements a lot, it seems, since they started riverside seating) and the show is absolutely fabulous from this vantage point, in my opinion.
When I first heard about riverside seating, I thought it was highway robbery, too. But, I decided to splurge for our first trip and pay for it myself as a surprise for my family. I am so glad I did! Here's my reasons: 1. We have early-to-bed kinda kids, especially the 5 y.o. DD. She would never make it to the 10:30 show and still be able to get up in the morning in time to make it to park opening. 2. The mobs are UN-BE-LIEVABLE! You can't even move around the area when it gets close to Fantasmic time. There is no way we could have gotten a decent place where my little ones could see anything except the high fireworks unless we'd staked out spots 2 hours before. It was insane. Granted this was Spring break, but I've heard it's always nuts. 3. I was paying for the privelege of just showing up at 7, picking out our seats, then showing up 20 minutes before the show started and getting shown to a chair and plied with a huge box of YUMMY snacks and my choice of hot chocolate, coffee, water, soft drinks several times during the show-- including getting a really nice comfy spot to watch the fireworks afterward. Yes, it cost a lot. But since we had never been to
Disneyland before and likely won't go again for a long time, it was so special to do this. In my opinion, it was WELL worth it. We loved it.
Just my 2 cents!