Hi! I did the Tony’s dining package for the Main Street Electrical Parade this past August (I was on the dining plan which made it worth it for me, as I always try to maximize my value when using the dining plan) and the VIP viewing area was around the Flag Pole in the middle of town square. Viewing for the parade was awesome. I suspect it’s the same viewing area for the Festival of Fantasy Parade, which I’ve watched from the same area, though I had just as good of a view/experience watching the parade in frontier land. The thing that I would say the VIP viewing area has going for it is that there are fewer people in the area so you have a little bit of “breathing room”.
I did the candlelight processional in December of 2014. The VIP viewing area for that wasn’t really a specific area of the amphitheater, but more early entry/access to the theater, but that being said, the VIP entry had people lining up an hour prior to the opening of the theater. So it’s really more of a guaranteed seat for the candlelight processional (which is awesome!) than a special seating area.
I hope this helps!