I agree, the castle can not be beat b/c of atmosphere! The food is OK. We've always had very good interaction!!!
We've done CRT twice and here's who we had:
1- Cinderella, Snow WHite, Aurora, and Jasmine- this was in 2001- I don't believe Jasmine makes many appearances here now, just once in a while.
2- past Nov. trip- Cinderella, Snow WHite, Aurora, Belle, and Mary Poppins
Both times the Fairy Godmother was in the lobby.
We are going to try to get PS for both this year. DD5 LOVES Jasmine and really wants to eat with her. But, she also wants to eat in the castle with Cinderella and her friends. So, we are going to try for both this year.
I think you'll have a magical time at either. If I had to choose one, I think I'd choose the castle for the atmosphere- simply magical to eat in the castle with the princesses!