Season ticket holder here, we live an hour away. The cabins and cottages sit right along the shoreline of Lake Erie, in the campground. Personally have never stayed in them, they both look very nice. We have pulled the 5th wheel up and camped before. Very nice and clean. Has a great pool/hot tub area available. We loved going back to a late lunch I had in the crockpot. We would relax a bit and head back to the park.
As others have mentioned, food and drink prices are terrible!! Our norm is to eat breakfast before going in. If we are driving up for the day, we started packing a cooler. They have a nice picnic area right outside the main gate. Covered, lots of picnic tables. Grills if your interested. Remember your charcoal! Then we would eat on our way home. If you like pizza, Chet & Matt's is about a 5 minute drive. AWESOME food!! If you choose to eat in the park, Game Day Grill, located near the Raptor is fairly reasonable, a sit down restaurant. On the order of a sports bar. Food is good and less expensive then the 10 buck basket of chicken fingers and fries. I'm not even joking on the 10 bucks!

I understand they want to make a profit, but they really rip you off.
Castaway Cay is a remodeled hotel. Guessing 4 maybe 5 years ago CP bought it and turned it into their indoor water park. If you have never done an indoor waterpark and you have nothing to compare it to. You would be happy with it. Its on the smaller side. Now we have stayed at Kalahari, nothing compares to Kalahari. But to us, that is a vacation in itself. I would never pay the money to stay at Kalahari if we are going to CP. Thats just 2 seperate getaways for us. My girls are even disappointed with Great Wolf Lodge, since doing Kalahari. It is the biggest and best around.
We have stayed at the Hotel Breakers. Its nice and clean, right on site. But its been there a long time. As far as staying on the Rt 250 strip, you will find plenty of hotels. But you will find plenty of traffic to get into the park each and every day. I'm talking an hour plus in traffic.
I don't think you could go wrong picking either the cabin or the cottages. They are cute little things, fairly new. I'm guessing 5 years old, maybe a bit older. Well kept. They book up FAST. So make your reservations as soon as you can.
Cedar Point has had declining attendance the past few years. Its not like growing up, when you did have the 2-3 hour wait in lines. The biggest coasters, Raptor, Millenium, Maverick, you can expect an hour + wait. Most everything else 15 minutes maybe 30. You can cover the entire park in a day. If we bring the camper up for a long weekend. We like to do CP the first day. Then enjoy Soak City the second day. Give me an inner tube and the wave pool...I'm good for the day! CP can be exhausting. Especially if your in the dead of summer. SC is a good way to wind up your vacation. Lots of slides, and plenty of comfy lounge chairs too. Enjoy your trip!! Lisa