I second 'Ohana with Lilo and Stitch. Food is tasty and brought family-style to the table so it's more civilized with fewer people and kids wandering around. Every half hour or so, Mickey leads the kids in a cute parade around the room.
The characters aren't too scary -- in addition to Mickey, Lilo and Stitch, as I recall, we had Minnie(?), and Pluto. Even Stitch was well behaved and very gentle with the kids.
We used to book a breakfast around 10:30 a.m. or so. There was lots of character interaction. After trying several character meals, we liked 'Ohana best and stuck with that one for the rest of the character meal years.
The boys are 15 now, so no more character meals. I know, some people like the character meals for all ages, but we're trying new things now. We're actually taking them to Bistro de Paris this year!