First time WDW trip, many questions

DD was around that age when we first stayed at POP and she loved the larger-than-life icons. If I were you, stay at POP and with the savings you can easily afford a day or 2 at a waterpark so everyone can spend time together, and also that would allow $$ or Uber/Lyft to visit your sister's resort. Staying at different resorts you can eat together and hang out in the lounges and other public spaces, just not the pools.
 
Even DVC members are not permitted to pool hop currently, so I wouldn't plan on being able to swim at your relatives' pool or sitting within the pool fencing. You could always hop a bus to the MK from your resort, then take the monorail or ferry over to the Ticket and Transportation Center and walk over to the Polynesian. You would not be able to walk from the WL area to the Polynesian because of all the traffic. Unless you really like to live dangerously.
 












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