Yes and no. You certainly can watch the show from there. And you can probably see a so so view of the fireworks -- Skyline Terrace never has a great view of the fireworks -- but you won't see any of the projections on the castle (because you can't see the castle from there) or on Main Street (can't see that from there either). MMM is a projections heavy show (in fact, the fireworks aren't even shown every night -- check the entertainment schedule to see if it says "MMM with fireworks" or "MMM"), so you want to view somewhere where you have a clear view of the projections. Right now, Main Street and IASW are winning the polls for best viewing areas.
For the same mediocre/poor view of the fireworks without the Skyline Terrace price tag, watch from the tables at Galactic Grill. Only difference is you'll be on the ground floor vs. on a higher level. And you can have a meal while watching.