We went last year; got a dinner table at Rock-n-Java, and it gave a good view of the parade. It was fun to see all the kids and the bands, but once was enough. Realize that the parade starts at the Municipal Plaza, goes north to Airport Blvd ***turns around*** and comes back down Melgar. It's a long parade, so you're looking at the official activities going on until Midnight (and I think there was a concert at the Plaza after the parade).
Do you know where your room will be a Casa Mexicana? Rooms facing Melgar are going to get a lot of noise, but given how open the atrium is, even rooms in the back may not be completely shielded. And just getting in and out of the hotel could be tough during the parades.
If it's something you're interested in, without all the debauchery of Rio de Janiero, by all means go. If you're coming to Cozumel to dive, and especially if you have an operator that departs early in the morning, you might want to choose another time.