Based on what folks wrote, we tried the Liberty Tree during our recent trip (President's Week) and we really liked it. We thought the dinner was much better than the Crystal Palace. It's basic comfort food (turkey, ham, roast beef, potatoes, stuffing, etc.) but it was good...couldn't stop eating the honey-butter on rolls! We also liked the small "colonial tavern-like" setting much more than the Crystal Palace which we'd found to be huge and noisy and "too busy". The character interaction was well organized as the characters came around to each table and the staff was great.
Frankly, as a family of three (2 adults and 1 young teen) we just wanted to try LTT and the fact that it was a character dinner wasn't that important to us. I do sort of agree with what an earlier poster said about the character meals consisting of "decent" but not outstanding food. But, we were on the dining plan for 6 nights and had reservations for table service at five other restaurants at WDW including Mama Melrose, Captain Jacks, Kona Cafe, Wolfgang Pucks, and Tutta Itali. And, at the end of our trip, just for fun we voted as a family to "rank" our dining experiences based on the food, service, & atmosphere. Here's where we ended up:
1) Kona Cafe
2) Tutta Italia
3) Wolfgang Pucks
4) Liberty Tree
5) Mama Melrose
6) Captain Jacks
So, we ended up ranking LTT higher than 2 more traditional restaurants...although Mama Melrose and LTT were really close. Of course, everything depends on what you order and other factors.