While the differences are more subtle than the difference between say, Spectro and the MSEP, the differences are still there. The narration in particular is out of place, and the whole "Dreams" concept does not fit World Showcase nearly as well as "Nations".
But yes, the puppets are the same or very similar, and the overall look of the parade is similar.
They used the same music that was in Nations, but they simply butchered a couple of the transitions, and one in particular sounds like it was done on a cassette recorder from 1975. (Ok, I exagerrated. 1985.)
Nations gets my vote hands down (just in case you hadn't figured that out!), though ToD is still a good parade.
It appears that ToD is ending on 2/28/03, and there will probably be a replacement at some point. One rumor is that the replacement will start as early as sometime in March, but that is not confirmed.