Personally, I'd split the difference and stay at PPH (if it's cheaper than DLH, depending on whatever deal you can get).
It's also, IMO, a shorter walk as long as you go through the GCH. We just stayed at the DLH and we were in the closest tower to DTD (Dreams), and that walk really felt longer than when we stayed at PPH.
Just a quick note on the idea to look into the PPH instead of the DLH. I think the photos I have seen of the DLH look more "disney'ish" than the PPH. Although, the PPH does have nice rooms. Also, the pool with the waterslide at the DLH is unmatched at the PPH -- IMO!
FWIW it's all so personal. We did enjoy our DLH stay (just got back last night) but I prefer the PPH rooms. For one, the bedframes at DLH HURT when you slide off them wrong. They are big wooden sturdy things, and the foot of the bed can and will bruise you if you go off them wrong.
And the PPH rooms are just brighter and sunnier.
For an adult trip I wouldn't have a problem with the huge windows at DLH but with my 5 year old I was just scared that he was going to do something crazy (he figured out how to open the sliding glass doors before I did).
Since it sounds like you're checking a package vs an a la carte trip, be SURE to check paying for things separately with DLH.
By the way, with the package, the resort fee is wrapped up inside of the package. You won't be charged the resort fee separately.
I'm 5'3", DS is learning to swim, and the Neverland pool is 4" deep ALL the way around. States 4', 4', 4' all the way around that pool, unless there was someone standing in front of a 5' marker each and every time we were in there.

It's fine to swim, though, I kept forgetting that I could stand up easily.
If your kids are younger, you might call the hotel to find out what the big slide regs are. There was either a "you can swim well" rule or an age or height rule, I don't know. DS refused to give up the swim vest for more than 5 minutes at a time (swim vests in ample supply by disney) and I noticed that no one was wearing a vest on the big pool.
If your kids are smaller...listen...that big pirate ship in the pool? USELESS. All DS wanted to do was play on it, and you can't. It's untouchable. FRUSTRATING when you don't know that ahead of time. And silly. Get this big fun "draw" for little kids and then they can't touch it. Seriously, why have it? It was the ONE BIG annoyance at DLH, and it was every day.
The slide for littles at DLH is cute, fun for them, but cramped for the adults at the bottom of the slide.
At PPH the slide doesn't go into the pool, it goes into a sort of shallowish tank of water. Makes it possible for the littles (who are brave enough to go on it) to be OK on it, and that's a bonus.
Anyway, be sure to compare apples to apples so you know exactly what you are and aren't getting.