You have wonderful points. I think maybe I was thrown by all the bits I was learning online about ASMo: "smallest rooms" and "almost no storage space and the "outdated theming" and the not so subtle "but if it works for your family, the savings (etc etc)" as if that was really the only draw.
But my kiddo loves Mickey (surprise surprise), can't swim on her own yet (no water slide for us), loves Toy Story, sees the Dalmatiins on Disney Junior... I think this will work out just fine. I think part of my minor sad was waiting another 2 months and I blamed it on the hotel, maybe? But I think all magic will be completely preserved, no problem.