Carnation Cafe (TS) - limited view of the parade. It can be great or not, depend on the people standing on Main Street between the parade and the outdoor seating area. You can usually see the tops of the floats without any issues, but the street level parts are more iffy.
Carthay Circle Restaurant and/or Lounge (TS) - good food (both upstairs in the restaurant and downstairs in the lounge). Lots of details to look at. There is a free tour of the restaurant in the morning (10:00 am, I think) and the CM that leads it will give you a lot of history about the building.
French Market (QS) - good food and great place to people watch. There is also live music (check the schedule for show times) from the Royal Street Bachelors, which is a nice touch. It's a great place for people watching because you can see a wide area from there. If you are eating during Fantasmic, you'll be able to hear the music (seeing the show is very dicey and not terribly likely).
Cafe Orleans (TS) - good food (some items are similar to Blue Bayou) and another great people watching spot. The view is pretty much the same as at French Market.
Hungry Bear (QS) - I haven't eaten here in a while, so I can't really comment on the food, but the seating area has a view of the Rivers of America. You can watch the canoes and River Boats (Mark Twain and (if running) Columbia) go by. You can also see folks on Tom Sawyers Island.
Plaza Inn (QS) - great fried chicken. Some of the outside seating area might have a view of the parade. There are a lot of bushes that get in the way, but you can certainly hear the parade.
Rancho del Zocalo (QS) - I wasn't that enamored of the food (it was kind of spicy), but it does look pretty at night. You don't have to eat there to stop and see it.
Flo's V-8 Cafe (QS) - the food is okay, but depending on where you sit you can either watch Route 66 or part of the race on RSR. If you want to sit outside, there is eating that will potentially allow you to do both. It's a nice place to take a break and watch things in Carsland.
Pacific Wharf (QS) - lots of different QS options here and depending on the table, you might have a view of the parade (I haven't tried this, but you can see the route area, so I'd guess you can see something - probably the tall stuff).
Starbucks in DCA (QS) - there are a handful of tables that are outside and face onto Buena Vista Street. It's another good people watching spot. You might also be able to see Five & Dime or the Newboys performances, depending on the timing.