I think the only character dining right now is at Topolino’s for breakfast. No fireworks, no BBB, no meet and greets ie: hugs from characters.Believe it. My nieces did it (both under 8) and didn’t even complain. Kids are moldable. You prep them, practice and keep talking about it BEFORE the trip, and they will be fine with it.
If I’m OP, I’m still going, just be prepared for no physical character interaction but you still see characters and can do some character dining.
The low crowds, no worries of fast pass planning, and almost no wait times make it 100% worth going.