I can't really answer about the Category 3 seating, we had great seats right up front, but I don't recall the seats in the back being on risers or anything like that so it might be hard for the little ones to see. My DS was 2 and my DN was 5 when we went, they were both very good and neither complained, but I don't think it was one of their favorites.
We all thought the food was pretty good...and you get a lot...family style. The service was good, too.
The show was not bad, the second half of the show was definitely better, the fire thrower was very good.
All in all, I'm glad we did it once, but I don't think we will do it again any time soon...
HTH