We've done a suite with 4 "kids" (ages 23, 14, 13, and 8 for the first stay) a few times. It works out great for us, but I'm sure there are people who feel it's too tight. On our last trip, our kids were 26, 17, 16, and 11 and we still felt like we had plenty of space...in fact we're staying there again in June.
The sofa bed and Innovabed are both double beds so they can be a tight fit (but certainly not impossible) for 2 "older" kids to share if they're not used to sleeping with someone else or are restless sleepers. None of our kids is used to sharing a bed with someone so we try to avoid doing that on vacation since none of them sleep well when they share a bed. They can deal with it for a night or two, but 7-8 nights would be a big problem. Our youngest child usually uses the seat cushions from the couch as a bed (I get extra sheets and blankets from mousekeeping to use on the cushions). It actually works really well and I've seen other people post that they've done that and the kids said it was very comfortable. Our youngest is probably going to be very disappointed when she's too tall to use these cushions as a bed. She likes to put them on the floor between the sofa bed and the wall so she has her own little "cave" to sleep in.

We drive to Disney so we take an air mattress for one of the kids to use and then the other two kids each take one of the beds. Everyone is happy.

We stand the air mattress up against the wall during the day so it's not in the way.
Having two bathrooms and having everyone under 1 roof is really important to us so we love the suites. We could do 2 rooms at a value resort for less money (and that's what we did before AoA opened), but we like the extra space of the suites and it's not a problem for us to bring the air mattress so the sleeping arrangements work for us. Plus it's nice for the parents to have their own private space.