My niece did it a few years ago, when she was about 8 or 9. She said she loved it and they all just laughed so much. It's a yes, for sure!
As for those who wanted info, here it is direct from the Disney website:
From 2:00 p.m. to 3:00 p.m every weekday, children ages 4 to 12 can join Alice and her curious friends at 1900 Park Fare for some "tea" (apple juice) and Crumpets (cupcake). A "mad" time is had by all as kids decorate their own cupcakes, have fun making a craft and delight in the silly antics of familiar characters from Wonderland. Space is limited, so make your reservations well in advance by calling (407) WDW-DINE (939-3463).