If a Disney theme is not absolutely necessary for your family and cost is a factor, check out the rates at the Hotel Royal Plaza at DTD. The rooms sleep 5. You are still on Disney property, just not in a Disney hotel. You won't have Early Entry mornings, but I believe you can purchase tickets for the E-nights.
I have ressies for May (and this is a special anniversary trip) and got a terrific rate through mousesavers. Our last trip we opted for a DTD hotel (the Courtyard by Marriott) since our first family trip was at the WL and we didn't feel the pressure to experience Disney to the same extent. While I loved the WL, the room at the CYM was bigger and (in our case) cleaner. It wasn't anything special, but the staff was nice and there is bus transportation to all the parks that ran on schedule. We had the benefit of being at Disney without the higher pricetag. A huge plus was that DTD was a short walk, while bus transportation from DTD to the WL was an awful experience for us. We look forward to our May trip and will be visiting Disney resorts for a few meals like we did before, an easy way to soak up more Disney atmosphere!
You really need to ask yourself:
Do I need to be immersed in Disney 24/7?
How small of a room do we want 5 people in?
How much can we afford?
How much time will we spend at our hotel, and how much of that won't be sleeping and showering?
You can have a great time at a DTD hotel, just as you could have a lousy time at a Disney resort. While an awesome resort is great, how much fun you have is all in the family's attitude.
Honestly though, if money is NOT a factor at all, I would stay somewhere like the Beach Club in the villas.
