Ok Mr. Property Magnate - the short answer to your question.....
What possible evidence do you have to back that up? What did Walt EVER do, to make you think he would undercut is philosophical QUALITY to do something less expensive? Did he EVER do that with his short features? Did he EVER do that in his full-length motion pictures?
...is yes. The long answer is .... yes - but I will flesh that out as I continue my education on the man who started it all.
As for that short answer, we can first look to his animated features. Perhaps we can even relate them to the WDW hotels he planned and envisioned.
The first animated feature was Snow White. Humor me, and equate Snow White with the Contemporary. Despite the roadblocks thrown up and the $1.5 mil spent with no guaranteed return, Snow White went on to be a landmark, and an $8 mil success. However, that was his last profitable bit of animation for some time. Likewise, the Contemporary was unique and visionary. No hotel had ever been themed like it.
The second animated feature - Pinocchio. We'll call this one the Polynesian, if you will. $2.6 mil and a huge loss later, Disney had another great animated feature in Pinocchio. Boy was Walt making a name and establishing a rep with the quality and innovation.
The third - Fantasia. Perhaps we can call that the GF. I know you don't like that hotel, but it is one of the big three by the MK. The film and the hotel are very sophisticated. So, $2.28 mil later you have an even bigger loss than Pinocchio, but another landmark incorporating classical music and never before seen animation technique. The sky is the limit, right? What can we do to top the quality of these films? Walt was not a man to look back, as you know. So you say Bambi - another great film. However, lets not forget the two films that were released while Bambi was in production.
The Reluctant Dragon and Dumbo. It is recognized that after the wonderful acclaim, but significant losses, that existed after Fantasia Walt recognized that he needed to find a way to produce features that actually made money. Dragon didn't make it, but Dumbo did. Even the distributors criticized these films. Dragon was actually a compilation of three shorts that were tied together in a feature. Some felt it lacked the animation quality of his previous works. Dumbo was a sixty three minute version of what had been intended to be a thirty minute featurette. The distributor wanted another ten minutes, but Walt refused because he couldn't afford the $500k those ten minutes would cost and he saw it complete as it was at sixty three.
So what happened there? Simple as the nose on your face. Walt put out shorter, cheaper films in order to bring in some cash so production of Bambi could continue and the Walt Disney Studios could continue to grow. Boy, if someone did that today..........
We'll - lets just call Dragon and Dumbo the Carribean Beach and Dixie Landings. Did Walt compromise his standards in those two films? Not really. They were still quality animation that had good story. Dumbo is one of the most loved films. But these films were a departure from the multi million dollar budget feature. Walt evolved his thinking and changed his modus operendi in order to respond to a business need and the prevailing economic environment.
So I say the moderate hotels are a cheaper and perhaps more profitable version of WDW hotel. Did those hotels live up to the Walt standards? Perhaps not. A view of the parking lot might be bad Show. But getting to my point.......
The moderates with a Walt touch would have been a reality IMHO
.... I think Walt would have evolved his thinking regarding hotels as well. He would have found a way to make a cheaper hotel with good Show. Just because it was not a deluxe doesn't mean he wouldn't have done it. Dragon was not a deluxe film in the scheme of things either.
We can find other instances where Walt compromised - such as the Prince in Snow White whose animation was less than perfect in the final scene and Walt passed on fixing it due to cost - but I hope to explore those later in the long version of my answers to you.
Yes - that was the short answer.
Bottom line is, while Walt may not have been the greatest of business men, he was not oblivious to the need to turn a profit. All too often he said screw it. Hence the failures and losses. Shortly after Dumbo Disney was in the hole $4 mil to the bankers. However, most of the time it was to be cutting edge. As I said before - those losses represented an investment. As you point out, he survived such thinking for most of his life. That principle provided a platform. That principle had him ahead of the curve, using sound, color, multi plane cameras, etc, before the rest of the animation world.
If Walt continued to put out deluxe hotels and priced them as you suggest, he would have been looking at losses, just like Pinocchio and Fantasia. However, what platform would these have provided? A dozen deluxe hotels affordably priced and generating losses wouldn't have done much for the hotel aspect. Without exploring different options for hotels Walt would have fallen behind the curve as someone else would have done the quality, affordable moderate hotel before Walt. It wasn't Walts style to let that happen.
Moderates and Walts touch cannot be in the same sentence.
This is where I believe you are wrong, my friend. Walt had a unique way of doing things. You admit he may have been swayed by events and looked down the path that WDW eventually followed in some respects. I think he would have gone down that path in his own way and given us 'moderate' resorts that you would have felt were good Show. Would he have done it just to capture a market segment? No. Because it was good business and necessary? Yes. Remember, Walt wanted his parks to be free to get in. He wanted to produce a place where families could go and have fun, quality time. If a lower priced hotel done with his flare, by his standards, afforded more people the opportunity he would have made it happen, and helped the business as well.
That is my view on the hotels - and I don't know that I see having different priced resorts as a caste system, per se. Just options - one of those things you are so fond of. Are the current levels of hotel all done to Walt standards - no. Could they have been - yes. Would Walt have - I think so. But as you point out it is all conjecture. However, do you think Walt ever envisioned WDW being the size and scope of what it is today?