I love the S/D. I prefer the Dolphin just a little more because of it's conveniences. It has Tubbi's which is a cafeteria that's open 24 hours, it has Camp Dolphin. It seems to be a little more family oriented although the Swan is wonderful too (we've stayed there 5 times and at the Dolphin twice!)
There is an amazing grotto pool with lots of kids things. There's miniature golf within walking distance.
As far as convience to the parks, you can take a boat to EPCOT or MGM. The BW is just a short walk away which has lots of activities and things to do at night. You certainly have the choice to walk to either one of these parks but if it is too hot just board the nice air conditioned boat (kinda makes me laugh-we were there in December and it was a "freezing" cold walk from MGM back to the Dolphin-certainly something out of the norm!!)
You would need to take a bus to MK but it runs fairly frequently.
I'm not sure how big the CR rooms are in comparison but I think the S/D rooms are larger than many of the other Disney resort rooms.
The Dolphin has either a king bed or 2 doubles, you would need a rollaway for your 3rd child. (aerobeds are a great option too, my dd loves hers even more than the bed!) The Swan has a king bed or 2 queens. If you can get the nurse's rate you certainly won't find a better value!
Check out
http://www.swandolphin.com for more details. I believe there are pictures of the rooms. There are also some more pictures at
http://www.wdwig.com
I recommend either hotel highly! IMHO, I think they have the best CMs around! Feel free to email or PM me for anymore questions about the S/D!