I have never stayed at a suite so I can not comment or compare for you. But I have stayed at many different DVC Villas, OKW, BCV and BWV. We have been in a 2 bedroom at OKW when there were 6 of us and in a 1 bedroom at BCV and BWV when there were 3 of us.
I love the DVC Villas. They are extremelly well done and are far more spacious than a hotel room. The full kitchen is great. I don't really cook while on vacation - but you certainly could in that kitchen - it is fully equipped. We do do breakfast in, and we have juice, soda, water, beer, wine and snacks available. We feel we definitely save money even by just eating breakfast in.
I love having the washer and dryer. I am home from the BWV just a week. We were there for a week and I threw a laundry in every other day. It allows me to pack less and also to not come home with suitcases full of dirty clothes.
The whirlpool tub is wonderful after a long day at the parks. And the King bed in the bedroom is very comfortable.
I am totally spoiled now, and will only stay at a DVC Villa.
A 1 bedroom might be a bit tight for your family, do you think? If you and DH had the King bed in the Master Bedroom, you would have 2 children on the Queen pull out couch, 1 child on the pull out chair (new and only in the AKV) and 1 child in a pack'nplay crib. This might be crowded. Do they all go to sleep at the same time?
Have you thought about the possibility of a 2 bedroom Villa? I am not sure of what the availablility is at AKL, but at other sites this is possible. This would give you a second bedroom and a second bath. The bedroom would have either 1 Queen bed and a pull out Double sofa or 2 Queen beds.
Good Luck with whatever you decide. Is sound like you will have a wonderful trip.