We don't care for the Contemporary either, and I really don't get that feel from the DLH. We are WDW vets, and we usually stay at DLH when we go to DL. We get the Disney "feel" there. Actually before the lobby and room renovations, I would say that we got more of the "Disney" feel there than every anywhere at WDW. The rooms are beautiful after the renovation and still feel "Disney", just not as classic old Disney as they used to be. I do get a more "business" feel in the lobby now and do think it lost some charm in the renovation, but it still has Disney touches, and Goofy hangs out in the lobby quite often.
We are WDW vets. We've stayed at the Grand Floridian; Poly, Wilderness Lodge, Animal Kingdom Lodge, and Port Orleans Riverside. We have stayed at WL multiple times over the years, and like you, we are fans of the place. To us, the Grand Californian is just a scaled down version of the WL. It is nice, but having stayed at WL multiple times, I can not stomach spending more money to spend 3 or 4 nights at GCH, than we ever have to spend 7 or 8 nights at the WL, when GCH is just a scaled down version. I will say that having an entrance to CA is incredible and that if you want to pay the big bucks for a theme park view there, it would be amazing. Aside from those things, you will feel like you are staying at the WL, but on a smaller scale. We like having a different experience at DLR. Plus, the rooms at DLH are larger than the rooms at GCH, which also makes it hard for me to spend more money for GCH.
As far as DLH, the first time we stayed there was pre-lobby renovation and we got an old room too, and we felt totally immersed in Disney. We absolutely loved it there. We have stayed there since the renovations, and as I said above, we feel that the lobby and the exterior of the lobby have lost a lot of its charm. It does feel a bit more business than Disney now. We really don't like what they did to it at all. The entrance used to have such charm and detail, right down to pink and blue glass chips in the ground (which obviously were the result of Flora, Fauna and Merryweather fighting about the color). We really miss the big Mickey outside too. That always felt like our DL greeting. But, as I said above, you have Goofy running around! The rooms are now more modern and upscale. They are really nice. . By terms of WDW standards, the walk to the park is nothing. We enjoy walking through Downtown Disney to and from the parks.