We visit local hibachi restaurants pretty regularly, and my noise-sensitive 2.5 yo dd loves the show! What is hard for us is the wait time before the actual cooking begins, so I bring a little ziplock filled with stickers, crayons, small notepad, gluestick and foam shapes, to keep her busy while we enjoy sushi and some peace.
And usually, she is restless before the end of any adult meal, so dh (or me, whoever finishes first) will usually take her for a little walk to explore the restaurant and exterior area while the everyone else finishes. We did the same with our ds who is now almost nine yo. They both have always loved Japanese food (fried rice, potstickers, grilled shrimp/chicken, miso soup...)
We've never been to a hibachi table where the cooking table was dangerously close, and the chefs usually make it pretty clear right away how hot it is. As far as the noisy/fiery stuff, when we see that coming, whoever is sitting next to dd will usually cuddle with arms "protectively" around her and make a snuggly exciting moment of it, "wheeeee, look at THAT!" in a cheerful voice to help set the tone and reassure her that she is safe. And because I'm neurotic like that, after dinner I like to include a statement along the lines of, "We know better than to play with fire, don't we!"
Btw, we have ressies for Teppan Edo next week - doing lunch then the 5 PM Candlelight Processional. I got a reservation for 8 of us even though I just called tonight!

I'll be back with a review in a few weeks!