Babes in Toyland was an amazing show and totally worth the price of admission to Dollywood alone. I am planning on going back during the holidays and wouldn't miss this show. The songs, dancing and acrobatics were fabulous. My kids loved the show and were sitting on the edge of their seats the entire time.
As for it being too cold, I would say it really depends when you are in Pigeon Forge. During the day, the weather was prefect, we walked around in long sleeves and jeans and were just fine, in the evening it was a bit colder and a coat or jacket would be needed. One things is for sure if you are cold duck into one of the shops for cinnamon bread and hot cocoa. I would not miss Dollywood during the holidays!!!