I have not done the Princess breakfast at Norway, but we did do CRT during
free dining when DD turned 3. I would say it was our most disappointing meal as well. The other character meals we did (Ohanas, Hollywood and Vine, Chef Mickeys, Garden Grill) were so much fun! CRT was nice in being able to eat in the castle, but in my opinion the inside is not nearly as impressive as the outside. And we went for DD's birthday and no one said anything. I even ordered a special cake for her. They forgot the cake and then I mentioned that I had ordered her one. The server brought it to the table, placed it in front of her and said Happy Birthday. I thought they would bring a candle or something. I'm glad we did it to experience it once; I'm just glad it was "free."
That being said, you know your daughter. If the castle would mean a lot to her, then do it. My DD would just prefer more character interaction and a more fun, laid back environment.