We chose a condo at Windsor Hills for our vacation to Disney last December and loved it! It was cheaper than a room at one of the values, and so spacious and comfortable! My kids loved it, and even opted to stay at the resort for our last day instead of one more day of Disney (blasphemy, I know). We had plenty of space, so everyone could have a little time & space to themselves (I greatly underestimated the importance of this when trip-planning). There were toys, games, and puzzles stocked. The pool was very nice. The condo was decorated with some Disney touches, too.
I worried that it was going to cost of tons of money not having the dining plan and that we would be disappointed without Disney transportation, but neither of those was the case at all. The restaurants my kids enjoyed the most were off-site, and we found that we weren't all that hungry while at the parks - I don't think we would have eaten our money's worth with the dining plan. It was a very quick and easy drive to and from the parks, and we did take Disney transportation once from TTC to Animal Kingdom; that part was easy. The transportation back took FOREVER, standing room only, on the bus. It was then that I decided that even if we stay onsite in the future, we'll drive to the parks. I don't think that will be an issue though.
Even now, my kids say they miss the condo. An off-site trip is different then on-site, but for me, it wasn't less magical. The time relaxing in the condo was the most magical part of the vacation for me! I didn't realize how little time I take to just relax while at home.
I hope you have a great vacation, whatever you decide.