I agree...R&C is the only restaurant where you know you'll be able to watch IllumiNations (either from your table or the reserved viewing area if your table does not have a view). A few other venues have tables with a view, but if you don't get one of those tables (and they often do not accept requests), then there is no alternative.
In terms of R&C with a toddler, all Disney restaurants (except V&A) welcome children. As long as the little ones don't disrupt other guests, I don't think there is any issue having them with you at any TS location. Now, if you think your little one is going to meltdown, throw a tantrum, or something like that, then perhaps you might consider having a meal earlier in the evening and then watching IllumiNations from somewhere around WS where you can leave early if need be. IllumiNations is one of those shows where there is actually a lot of good viewing locations around WS and you don't need a dining reservation to get a good view.