I agree with Butterfly123, my family could not get up that early everyday, they would kill me! I would totally get up that early though. To answer your question, no I would stay at the Hojo and save the extra $1,000 plus for table service meals, tours, and maybe the Fantasmic Desert package. I admit I have never stayed onsite, although I am seriously considering it. The only thing that would make me spend over $1,000 more would mean proximity to the parks, and that would mean staying at the Grand Californian. DLH is farther than some of the off-site hotels. I would stay at the DLH if I had a great deal though. It's hard to beat the Kid's Suite set up with the two bathrooms, and my two boys having their own quiet room to sleep in, and their own TV and couch.
Midnightred