I think it's oftimes a once in a lifetime experience for many Americans so if the opportunity presents it self, go. I suspect the Mall viewing will give the best bang for your buck at least if I compare it to NYC's fireworks boat rides on the same day. Wild horses can't make me pay super premium for "meh" food and wine at least here. The man used to manage a Manhattan hotel so we got free tickets one year and I would have rather stood in the streets. If the Mall viewing is anything like Boston's Pop and NYC's Macy, bring your own food(lots of good takeout in DC and "The Washingtonian" magazine can keep you up to date on that scene), some portable chairs, a coupla candles(maybe) and enjoy your surroundings.
Oh and for the record.. for the last 7 years I've spent the 4th of July in a small town in CT. Probably because the grass is ALWAYS greener on the other side;):D. We do visit DC, M-Day weekend though. Been doing that for almost 15 years and I still haven't seen it all or been bored:).