I did that last year with my 3 yr old. He absolutely loved it! Some tiny little town out toward Richmond, IN if I remember correctly. I never thought there were that many Thomas geeks in the world let alone in this poor little town. I'll bet they tripled the town population.
I cant find the picture, but one of the buildings next to the festivities had a small restaurant in it and the neon sign really said, "Family Dinning".
If you're ever looking for Thomas stuff, I have a pretty good resource. Let me know.