I'm glad this attraction is in the tournament. It is hit-or-miss, but I applaud its boldness. It's iffy to put something like this in a theme park where everything is so controlled, and I commend Disney for taking a chance.
If I have one complaint about the show, it's the third (and final) segment of the show, where jokes that were texted-in are read by a childlike monster. I have experienced this attraction at least four times, and not once have I heard an original or funny joke from the audience. Because of this, a potentially hilarious show has, for me, always ended on a terrible note. I can literally hear the audience grown as the corny, well-known jokes are read. If they eliminated that section of the show in favor of more comedic actors, I'd be much more satisfied. At the very least, they should move that section of the show to somewhere in the middle to avoid an anticlimax.
I would love to see Disney do more with the Living Character initiative (Turtle talk with Crush, this show, etc.) I think it adds more personal touch and re-rideability (or re-showability)
And yes, those are real people from my understanding, because they can react to the guests in the crowd, pointing them out by sex, what color shirt they have on, and respond to names.
I second Josh's thoughts on the "lame joke" section of the show.