Our DD was about 16mo on our Dec trip, and our experiences with restaurants was a little surprising. We do the deluxe plan so we did a LOT of Disney dining, and the places we had the most trouble were the ones I was least concernd about - Yak & Yeti, Kona - because the loud atmosphere in those places (that I thought would mask normal baby noises) disturbed DD. She did the best at the places I was most worried about taking her - Jiko, California Grill, Narcoosees - and seemed to take a "relax" cue from the quieter atmosphere.
Character meals were also way better than characters in the parks; she would get a little nervous about walking/being carried up to non-face characters, but when she was safely in her high chair and entertained with her food, she liked having them come to visit her.
That is such a fun age to do Disney, IMO! The excitement and reactions of a little one to the smallest things are just priceless. I thought our DD's eyes were going to pop clean out of her head when she first saw the balloon vendor on Main Street at MK, and every morning for the entire trip she was so happy to see the Mickey balloon on her stroller. And she developed the funniest ways of asking for things - "baby sing-sing" means Small World, Pluto is "dog-dog", Mickey is "me-mouse". The whole trip was just so magical because of her wonder at it all!