I am in the exact same position! For our five nights in July, the DLH is about $2000 before taxes, the Hojo is around $850 total with taxes. So for me, it will be well over $1200 for five nights. I LOVE the DLH. Its my favorite Disney owned hotel in either DL or WDW. But as much as I wanted to stay there, see the newly redone rooms and pool, I find myself unable to commit to paying that much. We do enjoy the Hojo very much and our last stay there (January of this year) was perfect. Even if I get a pin or discount, the DLH will be far more, and I may be able to get an Ent. rate at the Hojo.
The things I will miss by staying offsite is Magic Mornings, the walk up DTD vs. Harbor, and just the Disney feel. The pool is also better at DLH, although we love the garden pool at the Hojo. The things we love about the Hojo are the savings, being next to Mimi's, being able to stop along the way for beer or snacks that are inexpensive, the extremely comfortable beds and having a balcony.
I was so certain we'd stay at the DLH but once it came time to book and pony up the extra money, things changed. But for us, that savings is huge right now. As much as I love the hotel (stayed there seven times in the past seven years), I just have a hard time justifying it. Partly because our stay at the Hojo in January was so great and I am afraid I'll regret spending so much extra.
I will add that one thing that makes my decision a bit easier to make and swallow is that we have an 11 night trip to WDW in March and we will stay onsite there. This five night trip to DL in July is an extra bonus trip dh and I decided to take with the kids in honor of our 20th anniversary. If this was the only Disney vacation I was taking in 2012, I'd be more apt to book the DLH. But given the price of our 11 nights over spring break at WDW, well that makes saving money on our July trip more important!
Good luck with your choice, in my opinion you can't make a bad one because they are both great hotels.