We stayed at WDW over Christmas in 2000. Like some of you mentioned, it was something we always wanted to do.
On Christmas Day, we used early entry (how I miss that!) to get into the Magic Kingdom and that worked out great. We had the time to stop for coffee and danish on Main Street.
The crowd started to hit around 10 a.m. and it was shoulder to shoulder by noon. We had already been there for several hours and decided to go to the movie studio. It was an average crowd over there.
After stopping back at WL for dinner, we went over to the Magic Kingdom for the fireworks. I heard that earlier in the day that MK had reached the limit and didn't allow any more guests into the park for a while. We were there around 7 and walked right in.
As for the lodge, they had carolers singing in the lobby on Christmas Eve and on Christmas morning, a Mickey Mouse stocking full of candy was left on our door. We also went to the Candlelight Procession in EPCOT on Christmas Eve and that was fantastic. I highly recommend it.
The inevitable question is: Would we do it again? My answer is probably not. It seemed to me that anyone who goes to
MVMCP gets the same atmosphere (snow on Main Street, etc.) and the same parades and shows. And there are a lot less people to contend with.