On our trip last month, we did something a little different, that I don't often see mentioned on the boards. It's a private viewing space for Illuminations, called the Italy Overlook. (Not to be confused with the Italy Isola, which is a larger space on the lagoon.) It's a little balcony that's attached to the furthest Italy building on the right when you're facing the pavilion, and there's just enough room for two people. We lucked into it as "guest recovery," so it was free for us, but I think it's usually $125 dollars -- by far, the cheapest "special event" you can reserve at Disney.
A CM met us there at 8:30 and let us through the gate at the bottom of the stairs, and then we had the space to ourselves until Illuminations was over. It was really great -- no crowds, PERFECT view, and we brought drinks and snacks with us to enjoy while we waited.
With as many good places as there are to see Illuminations, it might not be worth it for everyone, but it's not all that much more expensive than the dessert party, and it was a lot of fun.