To the contrary, I think it is good to teach children courtesy, community, charity, and kindness. And I teach them by example. ("Mommy's going to watch from right over there, so that little girl can have a seat. I'll be right there if you need me.")
I would never do this, sorry. I don't go to shows or stuff like that to watch the show. I go and watch my son's face, and watch him enjoy it, to see his excitement. I sat through the entire Beauty and the Beast show at DHS and didn't watch more than 2 minutes of the show. My son was just so amazed with it all there was more magic in watching his face.
I agree with everyone else, If I waited an hour to hear Belle read a story, there's a reason I want to see it. I'm not going to get up and give anyone else my seat because they didn't get there early enough to get in. I know she's not real, and I've heard the story before. It's not about that, it's about the experience and magic of being at Disney and letting your inner kid out. Story time with Belle happens 5 or 6 times a day. Why did you wait until the second to last show to try to get in? You should have started trying with the first show.
Last year we wanted to get my son in Jedi training. We went over to that area well ahead of every show, and waited, and kids who got there before us and after us got picked. My son didn't. We told our son "sorry buddy, we'll try again later." And we tried and tried and he didn't get picked all day. So you didn't get picked, sorry, but you had fun today. No tears. I didn't ask one of the older kids, or one who got there after us to give up their spot for my son.
I've never done Story Time with Belle. Perhaps they seat the place in a particular order, front to back for safety reasons. They are probably told not to seat anyone after the area is full. It's not their fault. They're doing their job and what they are told. Disney is strict on following rules and I don't think it's fair to push a CM to break a rule that could cost them their job.
Standing there complaining probably didn't help. In situations like this I would have said to my child "sorry buddy, Mommy didn't realize it would get so crowded so early. It's my fault and I'm really sorry, but maybe we can find something else fun to do." That's how kids learn to handle getting over stuff and to move on.