If you don’t care about seeing the projections on the front of the castle, the area behind the castle is a good place to watch. You will hear all the music and see the fireworks, just not the projections.
The area near the castle is wet down and blocked off, but sort of even with the Carrousel on the side by Pinocchio’s is good. Even farther back near Gaston’s Tavern is pretty good and not usually busy.
If you want to see the projections, there are some places you can kind of tuck in by the stones near The Laugh Floor. Because of the stones, no one can get in front of you. Check the spots out ahead of time. The one disadvantage is that you may have to be waiting there a while because people do sometimes claim those spots pretty early. The other disadvantage is some of the ‘tuck in‘ spots have obscured view because of the way the rocks face. But, you can check that out earlier too.