Character Caravan was a backhanded gimme replacement for Surprise Mornings. In an effort to cut back on costs, WDW heavily reduced operating hours, shuttered attractions and eliminated Early Entry (Surprise Mornings.) Then, due to concessions with the labor union that the characters are a part of, WDW had many character hours to fill.
So, they gave us Character Caravan. An hour in the crowded lobby with 3 characters that we were sure to see later in the day anyhow - in replacement for restricted access to the parks - nearly guaranteeing uncrowded touring. Oh yeah, that's a fair trade. And, to top it off - they told us that we asked for it!!!
Guest outcry won out in the end and WDW returned Early Entry and later expanded it to the evenings, as well. Disney dropped the ball, but at least they picked it back up.