The drop on the outside is NOTHING compared to the one on the inside.
We rode it with our kids for the first time in October. We had been practicing over the summer on the log ride at one of our local parks and everyone did fine. The big drop was not the problem, it was the drop in the INSIDE that we were not expecting. The ride goes pitch black and then you drop and do a quick little up/down hill at the bottom--all in the dark. It was TERRIBLE. The kids wanted off (I wanted off!) and to make matters worse, the ride shut down for about 10 minutes while our boat was sitting at the bottom of the incline for the big drop. We were all praying for a walking exit, but then the ride started up again. Honestly, the big drop was not bad at all because at least you could see where you were going.
We were just at WDW Feb 4th-11th with my 3 1/2 y/o GS. The very first night we were there was extra Magic Hours at MK. I had my son measure my grandson the night before we left. He told me, he measured him twice barefooted to make sure and he was exactly 40" tall (maybe just a 1/4" below). We warned my GS before going that he may or may not make some of the rides and if he did great, but if he didn't it wasn't a big deal, as there were lots of fun things to do at WDW. That first night, we were thrilled when the CM said he was fine and could go on Splash Mountain. We got the first two rows and I asked him where he wanted to sit and warned him about the drops. He wanted in the front with me, with my husband behind us. The first couple of drops he was fine and just laughed, but that one into the 'Laughing Place' scared him. He said it scared him, but he was alright and I thought 'Oh no, the big drop is comming up and we're in trouble'. I warned him just before the big drop. When we got to the bottom, he glared at me and yelled "I'm wet. I mean really wet".

I asked him if he was ok and if he was scared. He glared at me and said, "I'm not scared. I'm mad. I told you I'm wet, really wet".

I then assured him we didn't have to go back on it. He suddenly grinned ear to ear and said, "No I want to ride it again and again. I love it." We got off and immediately got back on and he loved it. What's funny though, is the same CM saw us getting back in line and as my GS walked toward the measuring stick thingy, told us not to worry about it, she remembered measuring him just a little while before and he was fine, so go ride it and have fun. As soon as we got off SM the second time, we went straight over to the Stitch ride, where the CM said he was too short. In fact, he was too short for every single 40" ride the rest of the week, including Splash Mountain a few days later.

I guess the CM that first night wasn't paying close attention in the dark and he was actually too short and we didn't know it. We were the ones who told him he had to walk over there and be measured. We weren't trying to sneak him on or anything.
To the OP: I hate drops and always close my eyes on that last drop, but Splash Mountain is one of my favorite rides (definitely in the top three). I love the theming and music and ride it several times every trip. Plus it has at least five hidden Mickeys in it, that I love to spot (one in the barrels as you go up the first incline, one in the fishing scene, one in the gopher scene, one in profile at the top of the big drop, and one in the clouds in the riverboat scene).