Crunching a few numbers for you:
CRT breakfast for 2 adults/2 kids: about $130 or 2 Table Service Credits
Any of the following character breakfasts will cost 1 TS or about $70 with tax and tip:
Crystal Palace
Tusker House Donald's Safari
Cape May Buffet Character Meal
Boma Breakfast
Maya Grill
1900 Park Fare breakfast
O'Hana Character breakfast
So while obviously getting $130 refunded is nice....the fact is that with those 2 TS you could have 2 meals instead of 1. You'll have to buy breakfast somewhere, and while the character breakfasts are probably about double the cost of a food court/CS breakfast, you'll still be spending that cash somewhere to eat.
I just went through the same thought process for us.....after getting the
free dining I immediately booked CRT and California Grill....two places that we'd deemed outside the budget that could now be "free".....but because they were both 2 TS it meant that I'd have to pay for 2 meals somewhere along the way.....even if they were CS meals instead of the nicer TS meals, it was still a small chunk of money that wasn't necessary. So, if Disney's computers ever come back up I'll be cancelling those two and instead we'll have 4 meals instead of 2 paid for by free dining! I see that as 2 less meals I'll have to pay for out of pocket...and with them being "free" it won't strain the budget if we do the nicer character breakfasts (or early lunches at a TS which we're leaning towards) instead of a CS meal OOP because it's cheaper.
Whatever you decide, I'm sure you're going to have a fantastic time!