D'oh! I really have to read better when I wake up.
I've stayed at four hotel within walking distance of DL, and one further away which I won't talk about (although it was a good experience too). Here are some brief reviews from most to least favorite:
DLH: Obviously my favorite. It's pricy, although as a DVC member now, I like to stay now at property hotels as it's not that bad point-wise. Has the usual hospitality of all things Disney and some perks. Easy walk to the Monorail, which depending on the time of your visit may be only for hotel guests.
Fairfield Inn: Easy walk to the main gate, and decently priced and well maintained. I forget if breakfast was included or not. There are a few restaurants here, including a diner in the parking lot and a deli and pizza counter inside.
Ramada Main Gate: About the same walk as from the Fairfield. The rooms aren't as well-kept and the pool isn't as nice, but decently priced. Breakfast included, but it's like only one sandwich. You walk past IHOP, Denny's and I believe there's still a Tony Roma's on the strip (all of which are easy walk from here and the Fairfield).
Alamo Inn: Closer to the DTD side and near the PP Hotel. I think there was breakfast, but otherwise no frills and not well maintained. It's cheap however.
I'd say Fairfield is your best bet if you are trying to do DL on a budget.