There are many good places to sit along the route, but lots of people here like the benches by the Alice bathrooms (across from the Matterhorn). There is no seating/standing allowed across the way, so the parade characters all face the benches when passing -- makes for great photos. And the restrooms are right there for easy access with little ones. Other people like viewing from around IASW -- there is a raised area where the viewing is nice. Then you can go on the ride afterward or head to TT.