The benefit of a Disney hotel is that you get to have Magic Mornings every day it's offered during your stay, including the day of check-in (if you're there very very early) and check-out, if those days are MM days.
You can charge to your room.
You can, if they have the paperwork (they never did when we tried), have your purchases sent to your hotel, and they will be available the next day for you.
And there ends the big "pros" for me.
Many people love DownTown Disney and enjoy walking through it. I'm not one of those people. So walking through DTD on my way to and from the hotel is NOT my fave thing.
Unless you are planning to start and end each DL day in Tomorrowland, you'll either walk extra to or from the monorail station in T'land, or you'll be walking through DTD.
And the walk from DLH to the esplanade is about the same distance as HoJo's distance, but HoJo is straight-forward, not curvy and twisty (and full of shops for my almost-5-year-old to drool over). When you walk along Harbor, to HoJo, on the
Disneyland side, you can still hear Disneyland's music, which is kinda fun.
DLH is expensive, HoJo is not as expensive, and sometimes can be had for rock-bottom prices, with the Entertainment Book rate specific to the Anaheim HoJo.
DLH's expense is compounded with the $12/day plus tax Resort Fee that you pay on top of the rate, unless you book with a package or use DVC points to stay there.
HoJo has a fun-looking waterplay area that is pirateship themed, and a lovely pool in a garden area.
DLH has a fun-looking pool that is pirate themed.
HoJo has a mainly wonderful and kind staff. I don't know about DLH's staff, though they were nice enough to point out a comfy couch for me to sit on while waiting for the Grayline Disneyland Express bus.
DLH has free coffee in the lobby.
All that said, we're forgoing HoJo on our upcoming trip and staying at the Disneyland Hotel, partially because of my experience sitting on their couch. I kinda fell in love with it, and became intrigued by it. I also stayed there once as a child, have only the vaguest memories of it, and wanted to see if I can re-find more memories.
So even though I've absolutely enjoyed HoJo (mega-value!), and even though I don't see huge benefits of staying onsite (though I have done so twice now), I'm not adverse to trying out the DLH.
It's a HARD decision, especially for the first trip! Best of luck!