Angela,
Both are really good choices, but I would go with Donald's Breakfast. The food is great, and the setting is fun!
As to the sword, consider giving him a "Prince Day" in the park where you let him buy one anyway. You might even think of making it a "Pirate Day", where he still gets a sword, and maybe a pirate 'makeover' at the
Pirate's League!
As to the specialty cakes/balloons question, I think that the
mini-cakes are more than enough of a celebration. They are a great surprise that really will make him feel special. Just about anything that the
Disney Florists have done for me in the past have turned out to be REALLY GREAT, so anything that hits a cord for you should be a good idea.
You know the little guy best. Do what feels right!
I hope that this helps? Feel free to send me a follow-up question and we can come up with some more ideas!
Have a magical vacation!