Hi lenshanem,
This is a complicated question because it depends on what type of experience you're looking for.
Now, I've never stayed at any of the Disney hotels (we're staying at the
Disneyland Hotel for the first time this November), but I've been to all three and have seen their rooms, facilities, etc. Normally we stay at on offsite hotel like the Anaheim Hilton or the Howard Johnson, both I would highly recommend.
If you're looking for a most magical experience for you and your children, then I would stay at the Disneyland Hotel. It has all those special Disney touches (Neverland Pool, Goofy's Kitchen, glow-in-the-dark Pixie wallpaper border in the rooms, etc...) that your kids will love. The kids will definatley like this the best out of all the DL hotels.
If you're looking for something a little more sophisticated, stay at the Grand California. It has nice dining, nice rooms, nice pool, and is right in the middle of everything, and with it's woodsy theming, gives you a little reprive from the parks and Mickey. However, I don't think the cost of the rooms here are worth it, especially if buget is a concern, but if buget isn't a concern, then go for it.
Paradise Pier doesn't really have that Disney feel, but the rooms are nice and some of the rooms have the best views of DCA, but if you're considering staying here, you might as well as check out some Good Neighbor hotels, pick one to stay at, and save yourself a bunch of money.
A couple of Good neighbor hotels I recommend is the Hilton Anaheim or the Howard Johnson. I've stayed at both hotels, and thought they were nice.
Hope this helps.
