We love PPH! We've stayed at the Contemporary Hotel in WDW (which is a 'deluxe' resort) and PPH is just as nice inside the rooms, and MUCH closer to the parks. So if you compare PPH to the deluxe hotels at WDW, it ranks with them, IMHO.
That being said, PPH is a little light on Disney theming in the rooms. However down in the lobby and restaurants it is very nicely themed. One thing we love about the PPH is the 'beach' viewing room where kids can just plop down in some beach chairs and watch classic Disney cartoons. This is a lifesaver if you have cranky kids when you arrive and have to wait to check in. I also love the close parking, right behind the hotel. If you are staying at the GCH and self-parking, the lot is next to PPH... so PPH has an advantage there!
The rooms are reasonably sized, as are the bathrooms. They are clean, nicely decorated and in good condition (at least, the ones we have stayed in have been).
IMHO, PPH is CLOSER to the parks than DLH. If you go through GCH, the GCH hotel entrance to DCA is very close. Even to the DL park, going through GCH it is very close. And while you can't pool hop, if you're walking through the GCH lobby (which is the nicest part of GCH, IMHO - we've stayed there too) you are free to stop and sit by the fireplace and enjoy whatever activities are going on there. The only thing DLH is closer to is the monorail.
Frankly, I would never consider staying at DLH. If I want to go lower budget, I'll stay at PPH in a heartbeat. If I want to splurge, I'll go to GCH. No need to go 'halfway' for the location that's furthest away. JMHO.