For any of you looking to avoid the crowds but hoping for an incredible space to watch the parade, may I offer a suggestion. If you take Main Street all the way down until it starts to turn left into Liberty Square, you come upon the flagpole, I believe. If you can picture in your head walking and then bearing left heading into Liberty Square, on your immediate left there is an area marked with tape, and right beside it you have a cart. There's a triangular area there which can only accommodate about 12 to 15 people, and you benefit in having a wrought iron fence, railing at your back. You don't feel crowded in the slightest and your sight lines of the parade (they are extremely close and dance numbers all stopped right there) are incredible. True, you can't see most of the castle, but who cares?
I wasn't going to stake out a place for an hour and a half before the parade started just to be on Main Street. What I did notice was that after the parade started, a rope line was then strung across which limited access to the food cart to only those on your side of the street, and that some people still stood in front of the cart, but by no means was is crowded. Awesome spot for the parade and nothing was better than fireworks in Fantasy Land, with fireworks going off on all sides of you.