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Most of the bakeries use a buttercream. Of course there and MANY ways to make a buttercream, but each spot seems to do their own take on one. I haven't had any cake or cupcakes at WDW where they've done a whipped cream frosting beyond some of the strawberry shortcake type desserts.
On the flip side, royal icing hardens very quickly and many bakers use it as edible glue or for certain decor pieces intended to harden quickly and hold shape. It's not too common to see it used as a sole topper for a cupcake...although some icing blends used for iced/frosted cookies are pretty close to royal icing.