You are sooo doing the right thing.
I have never stayed at the value resorts but even compared to the other deluxe resorts, the AKL is a winner! We stayed there last summer with our 3 yo daughter and she loved it (so did we). There was nothing like waking up in the morning and seeing giraffes and zebras 20 ft. from your window.
That leads me to another point that someone else already mentioned; if you can afford it, book a savannah view room (I think we paid $30 more a night). I heard a tale that new rates were coming out at the end of this month-- I don't know if that's really true though. You should check occasionally w/ mousesavers.com; she has one of the best sites around for Disney info and for ways to get discounts at the Disney resorts.
If you book a savannah view, ask for either Kudo trail or Zebra trail interior savanannah views (inside the circle the hotel makes if you look at a map). This is where most of the animals seemed to congregate, especially the giraffes. Also, you should take your kids outside at night (the CMs will tell you where) to look at the animals thru night vision goggles-- very cool.
The AKL also has a really nice zero-entry pool which my daughter really liked (yet was not so full of kids that you were getting splashed and shoved around all of the time).
The only downside is that you probably need to rent a car, it is easier and faster to get to the parks then when you have to wait for the buses (I generally think this is true for all of the resorts though, no matter what transportation system they're on).
Hope you enjoy your stay; I don't think you'll regret your choice for one minute!
