Beautifully stated.
The great thing for me is that the value resorts aren't expensive enough to make me feel like I'm overpaying - but there's a huge key here in my case: I'm only traveling with 1 other person this Sept/Oct; it's just me and my GF. And I'm getting the free QS dining, which for me, is absolutely huge. I can easily spend $25 for food and drink just for myself ($25 = 2 quick service meals and 2 drinks... I don't see how I could possibly spend less than that during a full day at the parks). Between the 2 of us, that's $50/day. I'm paying $127/night for the room. If I didn't get free dining, I'd probably find a way to skimp and save on food (I'm honestly a cheapskate most of the time), but even so, $127 a night is pretty good considering it includes 4 quick service meals and 2 snacks per day between the two of us. This way, I don't need to try and pinch pennies for our QS meals.
If I was staying offsite, I'm not sure I could even find a monetary advantage when considering the food situation... $127/night at POP, minus $50 per day in food, drink, and snack brings my POP room-only cost down to $77/night
including tax. That's only a bit more than a decent offsite. And if I stay offsite, I'd absolutely have to have a rental car. That's another $20 per day, give or take, plus gas money. So that takes me down to $57 that POP costing me per night when subtracting the food and car rental... Not to mention the MYW package I booked includes 2 tickets to DisneyQuest, 2 rounds of minigolf, a few other misc discounts, refillable POP mugs, and EMH. (If I get really lucky, I'll have one of those dangerous refrigerators in my room and that will knock off another $15/night. That would basically bring my POP room-only price down to $42/night!)
But again, that's for 2 people! It's far more reasonable that way. If you're talking about a family of 5 or 6, these numbers go disastrously out the window. Room costs would suddenly escalate into dangerous territory because the values aren't an option (unless you want two rooms). And it's not just the room itself, but offsite you might have a chance to cook some of your own meals and eat at cheaper offsite restaurants. Cost is a very appropriate, rational thing to consider when talking about onsite/offsite.
The point is that everyone should do what's best for them, when considering ALL of the pros and cons. If money were no object, I'd love to stay at a Disney Deluxe. I can't remotely afford it - or more precisely, I'd have to cut my stay down to less than half of what it's going to be. I haven't been to WDW since 2008, so cutting my trip that short is out of the question. I'll take 14 nights at POP.
All told, with 2 cross-country flights, my room at POP with free dining, and 10 day hoppers, I'm down for $3,200 ($228 per day,
including air, food, and tickets). That's basically all inclusive for my entire trip, aside from incidental costs, tips, and any out of pocket food and souvenirs (I won't be spending very much on all that - I told you I can be cheap

).
Could I bring that number down by staying offsite? I honestly don't know. After paying for gas, food, and rental car, I'm not sure I could - at least not by more than a couple hundred bucks total over 14 days. Personal emotion is what makes staying onsite the clear-cut choice for me, but in my particular case, even the finances don't work in favor of staying offsite.
So anyway, sorry for the lengthy post. Whether you're staying offsite or onsite, just make the most of it! If you love Disney, your trip will be 95% in the eye of the beholder. Go in with a good attitude and you'll come out with a great vacation.