We just got back yesterday from our first stay at GC (insert sad face that we're home!). Have a 7yo and 10yo and stayed there for convenience and the bunkbed option. Kids loved it. There is no way that room is worth what we paid, just in terms of a "luxury" hotel - staff was amazing, lobby fabulous, enjoyed the dining, but our room was dated. But it was SO convenient. We were on the 5th floor facing the courtyard, and our elevator was right by the CA entrance. We were in CA in a few minutes after we left our room. The kids loved the bunkbed, and no arguments over bed-sharing. I'm not exactly sure I understand the room size being smaller, b/c the 2 queen room we stayed in at DLH felt much more cramped. Maybe having a bunkbed helped to reduce the furniture footprint in the room, plus having the balcony with seating for 2, but our GC room felt much roomier. The pool area isn't as exciting as DLH, but it's very easy to keep an eye on your kids, they have poolside bar service, and the chaises were about the most comfortable things we've ever laid on. You could see part of the Redwood Creek challenge area from the pool, which was neat. Also, we went up to the 6th floor viewing area, which has a great view of CA, very neat to get that overview. Kicked ourselves that we didn't catch part of WOC from up there on the night we weren't in the parks. And we actually did use Pinocchio's workshop for childcare for 2 hours one day, which was convenient.
I really missed the headboard at DLH and the higher level "Disney magic" feel, so I know this will seem backwards - but we'd probably stay at DLH for adults-only (can deal with being farther away, be able to go to Trader Sam's in the evening, etc) and go back to GC with the kids. That walk to DLH seemed so much farther than it is when it was with 2 tired kids, and not nearly as convenient for mid-day breaks or escaping to a hotel lunch or dinner. The bunk bed was a hit, and that isn't an option in DLH.