I don't know why more people don't hike this trail. Went up there on Saturday with two kids (12 and 8-year-old) and a dog. The trail was in great condition and covered most of the way to the waterfall (which was a blessing due to being 90+ degrees). There were only six cars in the parking lot, but even if full there was still plenty of parking at the ranger station. The good news we only passed a few people who were coming down. For the most part, we had the trail to ourselves (on a weekend no less).
I cannot speak for the peak/fire lookout, but the hike to the waterfall is a big bang for the buck (almost as good as Rattlesnake Ledge). Awesome views of Lake Wenatchee and the waterfall while small was beautiful. The bugs were not too bad, I didn't notice any on the way up, but the mosquitos were in force on the way down. My son's legs got chewed up a bit, but I think it was because he stopped a number of times to wait for us.
If you are in the area, this is a great hike for kids.

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