If you're concerned about missing the magic, but want to save money, I'd try Wyndham's Bonnet Creek. I believe you can get a 2 BR condo there for less than it costs to sleep five onsite, and when staying at Bonnet Creek you're "inside the gates" -- it's right off Buena Vista Drive, beside Disney's Caribbean Beach resort.
I've also noticed the 192 (or at least up where we stayed) looks a bit tired now and lots of things have closed leaving empty buildings, not particularly nice to go past every day.
"Offsite" covers a much broader spectrum than onsite, IMHO. It goes from "nice as Disney but cheaper for the same space and amenities" to "right nasty, who cares if it's cheap" to "better than Disney's best, for less!" Some offsite places are as close to all four parks as the onsite average, although only Epcot has any technically offsite hotels within walking distance (Swan and Dolphin, which are cheaper than Disney). Other offsite places are a fair drive away from WDW. And so on.
Personally, I don't like the drive in from 192, except from Vacation Village at Parkway, which is in a nicer-looking section than much of 192, plus it is so close there isn't much between it and WDW. I think the drive in from S. International Drive and World Center Drive is pleasant; I suspect there are strict local ordinances regarding signs and parking lots, which makes it tougher to find stores and gas stations when you want them, but also makes it prettier. Much of that area isn't landscaped, but the naturalized bushes and palms along the sides of the road are different enough from what grows closer to home that it definitely feels like vacation.
Staying on International Drive on the other side of SeaWorld, however, means your best route in is I-4, which is typical city driving with a vengeance! And it's a longer drive, to boot. But that's where a lot of the people who've told me, "I'd never stay offsite" think of as "offsite." In some cases, because that's where
they stayed, the one time they ventured offsite!
Plenty of people who will only stay onsite also say they'll never stay at this or that onsite resort again; even when it comes to onsite, sometimes you have to find the right fit. Offsite offers benefits you can't get onsite; more space for less money is at the top of that list, but it isn't the only thing. Some other possibilities might be your own private pool, or a resort with a true lazy river, or onsite canoeing, or nature trails, or an enormous pool with a double slide the kids can race each other on. I agree with whoever it was who said that we make our own magic, but for some families, there are some offsite resorts that offer a little help.