Last trip, we had the latest breakfast seating for both CP and CM, and it worked great for us for two reasons. It allowed us to hit the park early & go at it hard. By 10:30, we were ready for a break (and air conditioning!), and it was time to go eat. At Crystal Palace, I think we were about the last party to leave before they began seating for lunch. All of the characters came around twice. Pooh even engaged my children in a game of ring-around-the-rosie. Talk about a magical moment!!
Chef Mickey's had good interaction, but it was still pretty crowded at the "brunch" time seating.
I have yet to have a bad experience with a character meal, regardless of the time of morning. I've found the key is just to go with reasonable expectations. I've been guilty of hoping my family would have as great/special/magical experiences as those I've read about here. That would set me up for disappointment if we just had a "normal", non-eventful character meal. But, now I realize that each time I go to WDW is a blessing and each part is a magical memory, whether it is extra-ordinary or not.
Have fun!!!!