I think that the parades look better in the evenings. Pick the 7pm one. If you go in early June, before school lets out, the early parade might be less crowded. So do you want pretty or less crowded?
Going to the Tuesday 10pm Fantasmic! would also be less crowded. Midweek shows late at night cut down on the locals-who-have-to-work-the-next-day audience.
I agree, we always see the later parade. It just seems more magical at night, especially because we were sweating bullets the time we saw the afternoon one in June last year. Plus we are usually back swimming/napping during those hottest & busiest times of the day.
I agree with late parade as well. It can be tough sitting and waiting with a 3 year old when the sun is baking on you.
My 3 year old LOVES Fantasmic! We can't miss it. We usually go to the 9PM Fantasmic! because of their young age. If we have to wait for the 10:30 one they usually fall asleep. I say do that on Tuesday night also!