Local here, the weekend starting before Christmas... through the weekend after New Year's is crazy busy.... and lines are just something that you are going to have to deal with... so enough said on that... use your fast passes, to get the rides you really must do... but again there will be waits for this even... bring a boat load of patience with you and ask Santa for some extra for Christmas... The parks are beautiful during the holiday, and busy... It is totally doable... you just have to think and work outside the box... of how you normally do the parks...
There are plenty of other things that you might want to consider doing....
Check out Fort Wilderness, they have a hay ride, or horse back riding, chip and dale camp fire...
Miniature golf... Fantasia Garden or Winter Summerland
Head for the resort to check out all of the Gingerbread house, and chocolate works - look for the hidden Mickeys
Go from resort to resort checking out the decorations, grab a snack along the way or a meal... check out the whole resort for future trips... not just the resorts on the monorail, pick the first bus to a resort and just go with it... We have done this, and you can make a whole day out of checking out the resorts and the decorations....
Head over to the Boardwalk to check it out, and check out all the resorts, maybe have lunch and/or dinner....
Try to get pictures in front of all Parks Christmas trees - in one day...
Head to Disney Springs - Check out the Christmas tree trail... get a picture with Santa, dine in Movies or reg movies, Bowling, VR, Balloon Ride, or ride the cars in the lagoon....
Depending on what resort your staying at see what they offer.... and people will be in the pool swimming at this time of year...
If you are thinking about leaving the bubble:
Ice at Gaylord Palms is always something to see...
There are concerts happening... As well as Bowl Games....
Sea World does have a cute Christmas Party.... depending on the age of your kids might be fun...
Head over to Cape Canaveral, and check out the Space museum, stop at the port to see if the
Disney Cruise line is in port, hit the pier for some fresh seafood... lots of cool shops in this area, if you are looking for something different...
Head over to the beach... yes people will be on the beach... walking, sunning, and yes even a few in the water,
Legoland is not very far... I will say that this is would be a good fit depending on the age and interest of your kids...
Gatorland is another favorite... this is a nice way to spend several hours...
Dinosaur World, is another spot worth a stop.... our Grandson loves Dino's, and he always wants to go see the Dinos... there is not a restaurant on site, they welcome picnic's and have a nice play ground, with plenty of picnic tables... it is really well done... and super fun....
There is plenty of shopping mall, outlet malls, and everything in between and so many dinning options...on I-drive
On I-drive there is the Eye over Orlando along with the swings, and a Aquarium, and Wonder Works...
While I know everyone wants to stay in the bubble, Orlando and the surrounding areas, offer quite a bit, and getting out of the crowds for a while might be just the ticket, as well you might find something new to come back to each year... there are quite a few Christmas festivals, and art and craft shows if your interested in things like this...
I have friends that come during Christmas, and they rent a car... and head for places like Mount Dora for some unique shopping, they plan when Renningers is having the large flea market... they are in the same area... they also love to go to a tiny town Webster for the flea market only on Mondays... That is sorta their thing, she collects glass, and other things, and he refurbishes and creates new use's for old things...
Happy Planning...