Have stayed at all three DLR hotels and here is my choice from #1 on down....
Disneyland Hotel: Three towers (Sierra my favorite). Only tower that allows smoking in rooms is Bonita. Home of Goofy's Kitchen character breakfast. Nice layout, easy access to DTD and monorail. Great pool, gift shop and coffee shop.
Grand Californian: Totally non-smoking hotel. Good restaurants, pools and gift shop. Not real excited over their coffee bar (unless employee's have gotten more training). VERY spread out so if you are tired from the park you may just have another hiking trip getting back to your room. Rooms a little dark with all the dark wood furniture. Home of Chip & Dales character breakfast. Great access to DTD and DCA.
Paradise Pier: Nice hotel, not my pick if you have kids. The pool will be a BIG letdown for them. Good restaurants and home of Minnie & Friends character breakfast. Good access to DCA and DTD.
There are 4 Character breakfast in all to chose from. A quickie tip for best to last. I have done them all.
#1. Goofy's Kitchen: great decor, lots of characters, good food, wonderful interaction. Reservations a must unless you want to wait in line.
#2. Minnie & Friends: good decor, lots of character, good food, wonderful interaction. Thought it was more for girls than boys.
#3. Plaza Inn: good decor, Winnie the Pooh characters ONLY. Great food, lots of characters, wonderful interaction. Resevations not taken.
#4. Chip & Dale: good food, no interaction at tables with characters. Very few characters, not my choice with or without kids, very boring.