I would probably go with neither. First, are you going on the weekend because the fireworks likely won't run on weeknights in January. Second, when my DD was 2 she loved the fireworks on the 4th of July, so we figured she would really love the fireworks a few months later at Disneyworld. We were wrong. They are so much louder in the parks and the booms really echo. We found ourselves having to rush her into the Emporium and cover her ears. Unless you are sure that the noise won't bother her, I would skip trying to get some great spot to see them over the castle. You could also go for a less crowded spot than Main Street that doesn't involve waiting around, but I would be prepared to make a hasty exit into a store- or some people bring sound cancelling headphones. As far as World of Color-- at that age, my DD would have liked it, but unless you do the dessert party and she has a chair--- there is likely going to be a lot of waiting to get a decent spot and as it is standing only in the viewing area, a 2 year old won't see much unless you are holding them high the whole time, or get a spot in the wet zone on the rail. At age 2, mine absolutely adored the parades. I would go with planning to catch a parade.