We did the theme park view last year and requested it again this year. Our youngest was 14 months last year and will be just over 2 this year - and she (along with our older two) reeeally enjoyed watching the fireworks over Cindy's Castle each night! It was wonderful to come home, give the kids baths and get them into comfy jammies and watch the f'works from the privacy of our balcony or large picture window.
Also, you can see the monorail go by in the daytime. Kinda fun for the little ones.
Lastly, we prefer the 5th floor (I'm pretty sure we were on the 5th floor - now I'm second guessing myself) as it's on the same level as the food court, souvenir stores and Chef Mickey's. We still had a fabulous theme park view (could see Cindy's Castle, monorail + Space Mountain) and a great view of the fireworks at night.