Hi Melissa!
As someone who's taken his daughter to get her princess transformation at both locations, I'd take the Magic Kingdom over Downtown Disney. First, there's nothing more timeless than watching your excited daughter walking up to Cinderella's castle (where Bibbidi Bobbidi Boutique is located) to get her hair done at Magic Kingdom (in this case, those eyes dancing with excitement will be your nieces).
Also, the World of Disney store can get insanely busy and congested sometimes, even if the Boutique itself is a little less chaotic.
The staff members are extremely friendly at both locations, but if we're talking about capturing magical moments, the Boutique at Cinderella's castle (Magic Kingdom) is my call :-)
May you and your 3 little princess nieces have a Royal Time!
Visit Walt Disney World Resort to explore the magic.
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