It depends on what's important to you.
First of all, I want you to realize that most of the good neighbor properties are
motels, not hotels. Most of them are clean, decent properties, some even have pretty landscaping, some offer free continental breakfast, and most (or maybe all) have a pool.
If you utilize room service a lot on vacation, then you'll want to stay at a good neighbor hotel that offers room service (Marriott, Hilton, Sheraton, etc.) or one of the DLR hotels.
If you and/or your children want a pool slide, you will HAVE to stay at one of the DLR hotels.
Also, by staying at one of the DLR hotels, you can take advantage of Early Entry everyday that it's offered, whereas if staying off property you usually only get one Early Entry (if you have a 3 day or longer park hopper ticket).
Now, if I was to pick a good neighbor motel, it would be either the Candy Cane Inn or the HOJO (because they're just more cheerful, brighter properties). However, cheerful and bright may not be very important for others. Some like to stay at the Best Western Park Place Inn because it's literally across the street from the main entrance into the parks, and only a 5 minute walk to the main gates. A GREAT LOCATION!!! We stayed there and most likely won't stay there again because, even though our room was clean and spacious enough, it was just so dark and gloomy, and the entire property is asphalt/parking lot. It was just SO NOT MAGICAL, and kinda depressing really. I know.....not that big of a deal.....but I'm on vacation and I want it to feel special.....and happy.
We really enjoy the PP, and our kids LOVE the slide and pool. We're staying there again in 2 weeks. It's about a 10 minute walk to the front gates of DL or about a 6 minute walk to the DTD Monorail station. But a $416 difference is quite a bit, so you'll have to decide if having a pool slide, room service, park purchases delivery service, and access to Early Entry everyday it's offered, is important enough to justify the extra $416.
Here's a map showing most of the good neighbor motels/hotels.
http://www.wdwinfo.com/photopost/data/556/11450dlgoodneighbormap1.jpg
Here's a map showing the DLR hotels and DLR.
http://www.wdwinfo.com/photopost/data/556/11450dlmap.jpg