We went to the Poly last year, rounded up a few lounge chairs on the beach, and had a wonderful view of MK. Having the lounge there (for a few boat drinks) did not hurt either!
I was at WDW for the 4th in 2003. And the fireworks were AMAZING.
We didn't go into the parks on the 4th at all, because none of my family wanted to deal with the crowds. So we stayed at our hotel (GF) and did the Mouseboats and relaxed in the pool.
Around dinner, we staked out our place to watch the fireworks... we sat around a table right outside the quick-service dinner place in GL (perfect view of the castle with the monorail underneath it).
and the fireworks... one show over the castle, and two-three more over the water. Great fireworks show.
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