We enjoyed our dinner there last year. We are going again this winter and while it's not the best food at WDW it's decent and the kids love it. The kids will go get bibbity bobbity boutiqued and then we have dinner at the castle. We probably wouldn't do it again this trip but we are going with another family that hasn't been before so we're game to do it again.
The kids loved to meet Cindy and get their pic taken with her, and we liked the atmosphere and the idea of eating in the castle. It's really not all about the food, even though I'm a total foodie. It's a character meal in the castle. I would go if you haven't been before.
We have never tried the lunch but have heard from other Dis'ers that it's a good way to see lots of princesses.