Yeah the area has gotten a very nice face lift but still has it's problems ..of course everyone has to make that decision for them selves and chances are you'll be fine.
This has been one of my problems with hotels on Harbor. While I love the low prices and proximity, any kind of magic bubble I might have been in leaves as soon as I walk by the sleeping dudes at the bus stop AND watching the Disney CM bus pull out full of CMs that don't look at all happy. WDW definitely does a better job with "the show" in this regard.