You heard correct. the best place to see the fireworks and projections is the Hub, and yes it gets crowded.
Timing depends somewhat on when you are going (as in, what are MK crowd levels) and how particular you are regarding your viewing spot. Over say, Easter/peak spring break, the area will get so crowded, that CM's won't let you really even enter the area, even 40-30minutes before the show starts. They will open the backstage alley along Main Street, that comes out between The Plaza and the restrooms. Some (late arriving) folks watch the show from the end of that alley. On slower nights, you might be able to arrive moments before the show starts, and still find...a small spot, though most likely a less-than-prime spot partially obstructed by trees and or a trash can.
If it is very important to get a (near) prime spot, then many folks say an hour is wise, again- unless you are talking about prime college spring break/Easter. Those weeks, you need to allow more time. At the one hour mark, the area is likely to already be nearly full.
Mind, we aren't picky, and are willing to somewhat gamble....we usually arrive more like 40minutes before the show.
Admittedly, I haven't seen the Kiss God Night in some years. The Main Street shops stay open past park close. The Kiss, if it happens, happens, more or less- as the shops are closing. I say if, because the last few times I waited to see it, they didn't do it. Hopefully someone else has more recent/updated information, perhaps ask a CM that night. It is neat to see, but having seen it, I don't think - for us- it is worth the wait.