Hi Michelle:
Hoop-Dee-Doo Musical Revue is a wonderful family experience. Hoop-Dee-Doo is one of Disney World's longest running dinner shows, and it's easy to understand why. The show is entertaining, the cast is talented, the atmosphere is festive, the jokes are plentiful (and corny), and the food is finger-licking tasty. As you enjoy the food, the extraordinary Hoop-Dee-Doo cast puts on a show full of dancing, singing, and comedy. Hoop-Dee-Doo is very interactive and the cast frequently takes the show from the stage and into the audience to sing songs and engage the guests. Towards the end of the performance, a handful of lucky audience members are asked to join the show for the grand finale.
It's hard to answer if paying for category 1 is worth it, without knowing your budget and preferences. Category 1 will put you closer to the stage and will result in more chances at interaction with the Cast of the show. For my family, we like to be closer to the action than further from it, so we've opted for category 1 in the past. But if you are already stretching your budget, then you can opt for a lower category and still enjoy the experience.
Enjoy your vacation.