I know the cruises are expensive, but viewing lakeside events from the water has a certain quality to it that is hard to put a value on. I haven’t actually viewed the fireworks from the cruises themselves, but I’ve a friend with a sailboat moored at the Chicago Yacht Club (Monroe Harbor) and we anchor for just about every major lakefront event in the summer. You name it … July 4th, Venetian Night, Air & Water Show … we’re out there either in the harbor or anchored in the lake and watch them from the boat, or better still, from the water itself. I’ll even hop right into the lake, tread water and watch. It lends a certain “communing with nature” connection to the event. I’m pretty certain they aren’t going to allow that on the cruise, but you haven’t lived until you’ve seen an F-22 soar past you overhead while you float in Lake Michigan! I consider myself extremely lucky and spoiled, hehe. Maybe it goes without saying, but if ever you’ve the good fortune to make acquaintance with someone who moors a boat along the Chicago lakefront, butter them up as much as you can. 
I say go for the cruise. If nothing else, it is higher class, less crowded and noisy, if that sort of thing is important to you. It absolutely is to me.
As for restaurants with a view, the one that springs to mind most prominently near Navy Pier would be the Signature Room & Lounge on the 95th and 96th stories of the Hancock Building. The restaurant is on 95, the bar is on 96. Call it a tourist trap if you will, but the view is unsurpassed. Absolutely make reservations in advance (if it’s even possible at this point) at the restaurant with a southeast corner view of Navy Pier, but make them early because you aren’t the only person planning to be there. Obviously, the food costs more than it should, but you’re paying for a view which cannot be topped (literally or figuratively). Don’t mean to sound like a shill, but it is self-referentially “the restaurant Chicago looks up to” and I guarantee you’ll be spending more time looking out the window than at your meal, your drinks, or even each other. I’ve been there a number of times and each has always been a night to remember. Hard to put a price tag on that.
As far as the Taste, well … I’m not exactly a fan. It’s not the same event today that it was when it started out years ago. Yes, the food is always spectacular, but the venue itself leaves a lot to be desired. The size of the event has ballooned astronomically over the years, and so have the people. I guess that’s to be expected from the world’s biggest food fest, but my beef (pardon the pun) is that the portions are just way too big. Maybe I’m crazy but I remember a time when you could get regular portions (bigger than a sample but smaller than a meal) which would allow you to visit multiple vendors without committing an egregious act of wanton gluttony. The only method that I can think of for combating the portion problem is to go with a group of people with whom you can split food. Do it on your own and you’ll be stuffed after two vendors. It’s not an event for timid eaters, which leads me to my next gripe … the sights and sounds and, well, smells of hordes of people. Sorry fat people, but there’s fat, and then there’s fat with short shorts, tank tops, butter-fried jelly roll in one hand and a slice of pizza in the other, pushing a screaming brat in a stroller through the sweltering heat while deciding whether the next stop will be for double bacon cheeseburgers or a quart of soft serve ice cream. You’ll see it a lot and it makes my stomach turn to even think about it. It really is one of the more off-putting events I can think of to attend, and I generally go reluctantly with others and try to make the best of it. It’s an amusement park without the roller coasters, so that being said, take the same words of wisdom with you that you would to an amusement park: arrive early, wear sunscreen, designate a rendezvous/meeting point should you get separated, bring a strong stomach, and, well, be brave. 