We use that same parade stop by the bathroom and it is great!
I first heard about it from a post that was made by a CM on another board. It was real helpful to me so here it is. It lists all the float stops and where to see each one.
Parade Route from IASW to Main Street (first parade of the day--3:30 on days with two parades, 7:00 on days with one):
Peter Pan
1) Just below the Matterhorn before Triton Gardens
2) Not exactly sure, but somewhere along Main Street.
3) Just before the parade exit in front of the Mad Hatter shop
Beauty and the Beast
1) Near the bathrooms below Alice in Wonderland across from the Matterhorn
2) Again, not exactly sure, but just after the Peter one around Main Street.
3) In front of the Main Street Train Station
Pinocchio
1) Between the Mad Tea Party and Alice in Wonderland.
2) Not exactly sure, but probably around Coke Corner or the south side of the Hub
3) Around City Hall
Ariel
1) In front of the Mad Tea Party
2) Near the Hub
3) Around the Fire House
Ursula
1) In front of Storybook Land
2) Around the Hub
3) Across from the Emporium
Alice in Wonderland
1) Between Storybook Land and Small World
2) Between the Hub and Triton Gardens
3) Just past Ursula on Main Street, near the Magic Shop
Lion King
1) In front of the entrance to Small World
2) Near Triton Gardens
3) In front of the Market House on Main Street
Castle
1) In front of the queue for Small World (usually you can't watch from there, though)
2) Near the restrooms below Alice in Wonderland
3) At the end of Main Street near Coke Corner
Parade Route from Main Street to IASW (7:00 ONLY on days there are two parades):
Peter Pan
1) Not exactly sure, but probably near Coke Corner
2) In front of Alice in Wonderland
3) In front of the queue for Small World (again, you usually can't watch from here)
Beauty and the Beast
1)Not exactly sure, but probably near the Market House on Main Street
2) Near the restrooms below Alice in Wonderland and Triton Gardens
3) In front of the entrance to Small World
Pinocchio
1) Not sure, but probably near the Magic Shop
2) Again, not quite sure, but most likely just past the Hub
3) Between Small World and Storybook Land
Ariel
1) Probably near the Emporium
2) Probably right around the Hub
3) Just above Storybook Land
Ursula
1) Probably near the Fire House
2) Probably just below the Hub
3) In front of Storybook Land
Alice in Wonderland
1) In front of the Main Street Train Station
2) Probably right around Coke Corner
3) In front of the Mad Tea Party
Lion King
1) In front of the Opera House
2) Probably around the Market House
3) Near the restrooms below Alice in Wonderland
Castle
1) In front of the Mad Hatter on Main Street
2) Probably near the Magic Shop
3) In front of Triton Gardens
"My favorite place to watch is from the spot between Alice in Wonderland and the Tea Cups because you can show up 15 minutes before the parade starts and still get a front row seat because that's when they set up the rope turning it from a walkway into a viewing area. There's not a lot of viewing there, so you need to be there when the rope is set up, but there's a lot of character interaction because there's no viewing from the Matterhorn queue across the street so all the focus is on you. And the bungee guys stop right in front of you for the first parade, and Peter for the second! I've seen this parade dozens of times and I still tend to watch it when I come as a guest. I have to show everyone I bring to the park because it truly is a phenomenal parade, so even if you do end up watching it 4 times, it won't be time wasted."