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New Years Eve in Palermo

My husband and I will be in Palermo for NY Eve. We are trying to decide between a sort of resorty hotel by the sea with a recommended restaurant, where we expect they would do the traditional "Viglione" dinner + celebration and a more central place in hopes of finding festivities in a piazza. Any experience with this?

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We were there in 1994. There definitely were festivities in the piazza near Cuatro Conti; singers, dancers, musicians, fire eaters, people in traditional costume. We loved it. If you join them, bring along some champagne to crack open at midnight. The other choice sounds good, too.