Visitors? They are always fun to have around
Well from my experience in Hong Kong with any major events things can get ugly. I am not sure about getting down 3 hours early as it is a rather big area. But, pretty close. You wouldn't want to show up in the last half hour that is for sure as you may well end up being a block away from the parade route and being shoved around etc etc. I sure it would be cool to see, but I suspect getting back out would also be a nightmare.
But, if you are good with the crowds I think it would be worth checking out. I took on the crowd last night at the CNY Fair in Causeway Bay. It was nuts! (I bet worse than the parade will be even!) If you and your visitors wanna avoid the crowd turn on TVB Jade. It will broadcast the parade.