For four years we went to DL and stayed at the hotel for three visits and also have rented an RV...once.
I would suggest the hotel, only because it is nice to go back after the heat of the day and relax and watch TV, sleep or whatever. They also have in room fridges that are huge!! The hotel pool is nice too, never too crowded.
The RV's, are nice, but our shower had a
very slow drain. It had a full size fridge and stove and lots of cupboard space. The RV we had slept 6 people. The only real complaints I have is the water was kinda smelly and slimy (sorry, but it was) and the kitchen small, but after all, it is an RV!!! They are clean and well kept. And my DH is over 6' tall and had to leave the bathroom door open to do his "business".
RVing is nice if you like a fire at night, but the neighbours can be noisy. The lady next to us screamed at her kids all day and all night until 11pm.

I was PO. The laser show at night is very nice too!
This is a nice beginning step to a WDW vacation if you have little ones at a somewhat cheaper cost. It is not worth it unless you go during the Canadian savings time-check their website for info on that. We (the four of us) stayed in the hotel for a week for about $800, and camped for about $400 just for a few days (felt like we just unpacked, then were packing up again).
We liked it, but I think WDW will be magically different.
A warning about the food in DL: it is very, very greasy.

The pizza had about 5 times more cheese than we are used to, and everything felt 'oily'. Lots of fast food, which is OK for a few days, then it is just gross...not many healthy items. The Beaver Brother's lodge is VERY expensive so beware. There is a gorgeous restaurant down the road-can't remember what it is called exactly, but the food was tremendous-I think it has the word "wolf" in it, but don't quote me.
Hope all this helps!!
