Hello Sarah and welcome to the Disney Parks Moms Panel!
You have picked (in my opinion) one of THE best times to visit the Walt Disney World Resort. Your first day or so may be a bit busy, but the remainder of your trip should see low crowds according to the crowd calendars at easywdw.com. Holiday decorations will adorn nearly every inch of the property and there are many special shows and events to make your vacation even more magical! However, even with small crowds I recommend planning an itinerary to ensure the best possible experience. Since you have plenty of time to map out your adventure, I would suggest you either pick up the book "The Unofficial Guide to Walt Disney World" or purchase a subscription at touringplans.com. Both of these resources are written my the same folks and I have found them to be invaluable when planning. They even have predesigned touring plans based on the age of your travelers.
As for table service restaurants, with the age of your kiddos, I would highly suggest some character dining experiences. The all-you-care-to-eat style of most character dining locations helps keep everyone happy while keeping the wait to a minimum. And, speaking of keeping waits to a minimum- character dining provides the opportunity to meet some of your favorite friends right at your table! No lines, no waiting! A few of my family's favorites include Chef Mickey's, The Crystal Palace, and Akershus Royal Banquet Hall. My grandson really loved Disney Junior Play ‘n Dine at Hollywood & Vine located within Disney's Hollywood Studios. Your kids can play and dance along with friends from Doc McStuffins, Sofia the First, Jake and the Never Land Pirates and Handy Manny.
I hope this helps as you begin planning your most pixie-dusted vacation ever! If you have more questions, come on back- we love to help.
See ya real soon!
Anne