I’m guessing that the little kids didn’t even notice it, except when a fuss was made. My experience has been, that little kids are more caught up with what Disney has to offer, than what some of the adults are doing, especially if they are in the predominantly kid areas during the day.
Kids notice more than you think. My mom is a professional dancer, so I encountered a lot of gay men as a young child and yes, I knew perfectly well what was going on.
But why should parents who wish to bring their kids up without exposing them to explicit sexual behavior be forced to put up with this in what is billed as a children's amusement park?