My older son enjoyed the rides there, too. He was 9 at the time of our visit. (He's 11 now...where DOES the time go???)
What I noticed is that people move as a herd there. The trick is to not get into a herd...go to whatever line is shortest, not to the nearest ride. It's not a big area, so it's not like you're going to be walking miles.
We went in late May/early June. It was insanely crowded at
Disneyland, but CA was a different story. Even during the day we never waited more than 5 minutes for a ride. However, when we went back to the Flik area at dinner time we had no wait. Matter of fact, the CM running Heimlich's Chew-Chew suggested we ride twice in a row...because the little recorded schpiel is different each time.
I think your toddler will love this area.
As to the rest of the park...I don't think you would want to put a toddler on the jellyfish or anything like that unless you are going to ride, too. My younger son had turned 4 just before we went...hew was old enough to ride those rides with his older brother.
Ride the Sun Wheel. The line there was pretty long on the left side...where the cars move. Go in the line on your right...the fixed cars. We had no wait at all on that side.
I agree...the carousel will be a hit for a toddler.
Hope you have a great trip!