I just got back from a value 2BR (rented points), and we lucked out with a savanna view that we were more than pleased with. Now, of course, not being a
DVC member, I was not used to such lavish accommodations and all anyway, but still, it was very nice.
There was me, DW, DMiL, DS7, DD6, DD4 and DSinfant. More than enough room for all of us. The living area _does_ have the sleeper chair as well as the pull out couch, but due to the size of the room, I can't see how it would be possible to open both at once.
That said, I can see how a studio (the second BR portion in my case) would be cramped for four people. With the pullout couch opened next to the queen bed, there wasn't much extra space.
But still, for the seven of us, it was very very roomy! In a 1BR, I can't see the smaller room size likely to be a big problem. (unless you need room for 5 people, in which case you'll need the standard or savanna view room)