My DH and I just got back from AKL 4 days ago. It's our favorite Disney resort and I hope we'll be staying there again in the not-too-distant future.
We feel that a savanna-view room is definitely worth the extra $. We spend a lot of time in the room sitting on the balcony, looking at the animals. There is nothing comparable to this anywhere at Disney, probably not anywhere in the United States.
I can't tell from the original post exactly what you're looking for. If what you want is a location that's super-convenient to the parks and the animal-viewing at AKL is much farther down on your list of wants, then there are certainly better resort choices for you, especially the monorail resorts (CR, GF, Poly), which are all much much closer to MK, or the Epcot-area resorts (Boardwalk, BC, YC), which are walking distance to Epcot. BTW, the bus ride from AKL to MK is only about 15 minutes long, which, to me, doesn't seem that bad. Also, because AKL doesn't share buses with any other resort, there's rarely a long wait for a bus in either direction.
If what you're looking for is a resort that's close to Downtown Disney, then there are better resorts for that, as well, for example POFQ has a nice boat ride to DD.
I'm not exactly sure what's meant by "limited food choices." Are you referring to being able to eat at off-property restaurants on International Drive? If that's the case, then you're not exactly near this locale from any WDW resort, but you can certainly drive there from any of them. If what you mean is that AKL doesn't have an extensive food court, then, just to let you know, none of the deluxe hotels has a huge food court. The Mara, AKL's counter-service restaurant, has a very nice selection of food, but it's not a value- or mod-style food court. Jiko is maybe the best restaurant on property (including the parks) and Boma has a superb buffet for breakfast and dinner.
Since you haven't been to Disney since 1989, be prepared for many many many fantastic changes and additions. There are 2 parks you've never seen before (and Animal Kingdom is amazing if you're an animal lover ... btw, it's a 5-minute bus ride from AKL) and zillions of new dining options in all the parks. It's very easy to have a week-long or longer vacation and never leave the Disney property--and still not see and do anywhere near everything. Very different from life at Disney 18 years ago.
You just have to figure out what's the most important thing for your upcoming vacation. If it's a location that's really close to MK or Epcot, then go with that. If it's a quick drive to DD and International Drive, then choose something that fulfills that need. If it's having a savanna-view room at AKL where you can watch the animals at your leisure, then do that. You'll only be disappointed if you ignore your main priorities and try to compromise with something that doesn't really meet any of them. Believe me, I've done that and haven't been too amused with the results!
Keep reading the boards and asking questions. A good resource is allears.net, where there are loads of photos and info about all the WDW resorts. Enjoy planning your trip--it's part of the fun of going to WDW.