Our recent experience: We are not DL regulars, but we were there last month-- first time seeing WOC. I soooo wished we had the package. We were in the blue section and felt like sardines. Even close to the front, I didn't think it was a great spot. Also, I don't know if it would be like this in the dining section, but where we were people were talking loudly the whole time.... I mean that could very well be an isolated incident, but I imagine if you pay more for the reserved section you would be more into watching the show. I don't know. But I did turn to DH the minute it ended saying we should've forked up the extra money for the dining package.
That was just our experience--YMMV. I am sure there were plenty of people who think the FP is just fine. But we don't see ourselves visiting DL again, those sorts of nostalgic shows mean a lot to me, and this was our only night to see the show. So in our situation, I wish we had gone with the package.