I would definitely say MK. You'll find pretty much every princess and favorite Mickey cartoon favorites there. I can't think of anyone you don't see in the afternoon parade.
As far as the best place to view it, as close to the action as you can get. If you can be right up to the ropes along the route someplace you can see great. You just have to plan ahead, know the route and just have a seat and get comfortable about an hour before it starts. We often leave a few people there to wait and hold our spot and send the others to a easy to get on ride or for a snack to eat while we wait. If however you don't want to do that try along main street because they can't get to deep there as they need to leave space for people to get by. Liberty Square works well too because you can stand on the steps to the buildings and be able to see over the crowd a bit better.