I'm going to offer a different perspective...cuz that's how I roll. I am from CA originally so I had a lot of
Disneyland time. I never got to WDW January of 2008 and I immediately fell in love with it. BUT there is still a lot to recommend Disneyland...if you can get past the fact that it's not WDW. Here are some thoughts:
- DL is the original - you really haven't seen Disney history until you actually get out to Anaheim and see where the history happened. If you go there and read the book Mouse Tales, you'll be more amazed than ever at what Walt and Roy accomplished.
- Downtown Disney and Disney California Adventure have fleshed out the experience somewhat, but it is never going to be the vacation overload of WDW. Taken as a whole DL, DCA, and Downtown Disney are a great 3-4 day trip. If you plan for more than that, it should be because you are experiencing the surrounding attractions, not because you want to spend a week at Disneyland.
- DL has some things that WDW just doesn't - Indiana Jones is a great ride that only exists at DL, Pirates and Small World are better experiences at DL, The Matterhorn, Disney's original thrill ride, is only at DL. Also, the 'behind-the-scenes stuff is amazing: Walt's original apartment on Main St. with the light still on for him, Club 33, etc. Can't beat it.
- The hotels are definitely NOT up to WDW par. But that's actually part of the attraction to DL. Since you're not going to consider spending over $200/night at DL, you are free to take advantage of one of the REALLY close multitude of smaller hotels (we loved the Anabella - free breakfast and large rooms) that are less expensive and make the trip more about the parks. The Grand Californian is the best of the hotels, but for kids my age, it's a 'visit but don't stay there' since they won't appreciate the theme...it's not really as joyful as say Boardwalk or as adventurous as Animal Kingdom Lodge. But it's a great hotel with great dining and they are buliding DVC villas in it.
- Disney's California Adventure is the least impressive of all Disney parks...however, that actually makes it one of the most accessible. being able to hop across the plaza from DL to DCA and have a glass of wine on the patio overlooking the Paradise Pier area is really a treat after a long day at DL. Also, don't forget they are renovating, they've already opened Toy Story Mania, and they have Soarin' and Tower of Terror as well. It's like a condensed amalgam of the adult experience of Epcot and the mishmosh experience of Hollywood Studios. Definitely buy Park Hopper tix though so you don't feel like you have to spend an entire day at DCA. It's better if you do that park maybe in 3 hour increments for two days. That covers it all and gives you that break from DL.
- Finally, something that WDW can't compete with - Southern California. Orlando is only interesting because of the parks...and I LOVE it for that. I'd move there tomorrow no matter how much I hate Florida. But nothing can beat SoCal. Beaches, more theme parks (Universal, Knott's Berry Farm, San Diego if you want to go further afield), terrific shopping and dining.
In short, if you recognize that WDW is the most unique experience out there and take Disneyland for what it really is - a great global idea executed on a regional scale - you'll have a great time.
Regarding the age of kids - I used to be of the exact same mindset as you, dollysmom. But after a particularly stressful time a couple of years back, my wife convinced me to go to DL with our then 3 and 1 1/2 year old. Best decision ever. They BOTH loved it. What we forget is that Disney Channel and Disney DVD have ensured that every child no knows the characters much better than we ever did growing up. My daughters couldn't get enough of the princesses...and eventually the Pirates and Splash Mountain...and we became a DVC family and they look forward to each and every trip SOO much. You just have to be self-policing and be willing to break away from your plans to allow them the rest they need and you'll be fine. And nothing beats watching them enjoy the character dining and that mix of joy and fear in their eyes as you approach a big drop...any big drop. I love Disney more than ever for bringing that kind of joy to my daughters!
I hope this helps and if you have any specific questions feel free to ask.
Sometimes I don't mind talking Disney - you're usually safe asking on days that end in 'y'.
But then it could be also cuz I kinda grew up with it. It's definitely smaller scale than WDW, but it's really nice to be able to just walk from from one park to the other or even from the hotel your staying at. No buses to worry about! 
The Indy ride is awesome and I like the fact that my favorite rides- Tower of Terror, Pirates, Soarin' are all there within walking distance of each other instead of being all spread out like WDW. 
