Hi Erin and welcome to the Mom's Panel!
I am pleased to tell you that Disney Princesses are present at Breakfast, Lunch & Dinner at Cinderella's Royal Table. Characters are of course always subject to change but we have seen a mixture of Cinderella, Aurora, Belle, Jasmine, Ariel and Snow White on recent visits.
There is a note on the Cinderella's Royal Table page of the Walt Disney World website at the moment which states: -
Reservations from Jan 11 - June 30, 2011: Due to a refurbishment of portions of the back side of Cinderella Castle taking place, elements of the restaurant will be refurbished and there will be themed window coverings that will not detract from your experience, but will block the view into Fantasyland.
In my opinion, I don't feel that the window coverings would damage your overall experience. Dining inside the Castle whilst being greeted by Disney Princesses will still be magical for sure!
If you are concerned, as an alternative perhaps you could consider making a dining reservation at
Akershus Royal Banquet Hall which is located in the Norway Pavillion at Epcot. Here you are also greeted by the Disney Princesses during Breakfast, Lunch & Dinner.
Wishing you a fabulous meal with the Princesses whichever restaurant you decide to visit and a fantastic holiday!