HI Wendy,
I like to watch the Magic Kingdom parades in Frontierland or Liberty Square. I just enjoy this location because when the parade passes, I can turn around and head right to Adventureland. It just does not feel as packed as Main Street.
Unless you grab a seat early at Pecos Bill's Tall Tale Inn & Cafe, you will have to grab food from another location and eat it here. Pecos Bill's is counter service which serves burgers, hot dogs, fries and the tables outside are first come, first served so claim your stake early.
If you prefer table service, Liberty Tree Tavern is the only table service restaurant in this area. With a family style setting, you are transformed to 1700's America with steak, ham, salad and potatoes to enjoy. If you make your reservations about 75 minutes prior to the parade starting, you can finish your meal and walk right outside to see the parade.
Wishing you a magical vacation!
Beth