I agree with the previous posters regarding California Grill. Our three boys (ages pre-school to pre-teen) now rank California Grill as their second favorite restaurant at WDW. (Their favorite restaurant is Garden Grill.)
I think California Grill works out well for our family for several reasons:
1) The views are amazing, and our kids enjoy identifying all the Disney landmarks they can see in every direction.
2) The children's menu has a nice variety. Our middle son is a self-proclaimed Disney mac and cheese expert, and he determined that California Grill serves the best mac and cheese at WDW.
3) We book an early ADR - at or before 6pm, so the kids are not waiting too long to eat - we can return for fireworks viewing later. So I'll second the previous poster's suggestion regarding an early meal.
4) We have our kids with us, so we time our meal to accomodate everyone. In other words, we don't order multiple courses, we're all familiar with the menu before we arrive, and we ask for the check while the kids are still eating their meals. If we were dining without the kids, we would easily spend at least two hours at California Grill. With kids, we enjoy about an hour there, which works for everyone!
5) It's a perfect place to enjoy great sushi, good wine, an amazing view AND our kids' company all at the same time!