Yes. It's one of the reasons why I love those parade, and don't understand why people have such an issue with it.
My kid danced with all of the characters, got to high-five and hug them, and there's even photo pass photographers there taking photos. I think it's better than a meet and greet because it's more natural, not posing for a photo.
My opinion, dancing with your favorite characters in front of the Castle is more memorable and fun than standing in line for an hour to meet them and get a quick photo