Sorry I'm answering so long afteryou posted..I was out of town, but wanted to add a note.
We stayed at the Grand Californian last year from Dec 17-23rd. The crowds were very low until the Monday before Christmas, when school was out. Even then,
Disneyland was busy, but California Adventure was still reasonably uncrowded, so we made sure to go to DL on the earlier weekdays, and saved CA for the busier days at DL, like Sunday and Monday.
The hotel was stunning....I never want to stay anywhere else again. Being from Arizona, Christmas just doesn't seem like Christmas, but going to Disneyland last year really put us in the holiday mood, more than any year since I moved to AZ in 1980.
One caution on the annual pass, our friends couldn't go with us using their annual pass as the dates before Christmas are blacked out. Early booking through Disney, along with the lower rates up until the week of Christmas will probably get you the best rate you could get, or possibly
AAA. If you have kids, request a room with bunk beds....they worked out great for our 9 and 12 year olds. Sturdy, safe, and large enough for an adult.
Have a great trip!!! We'd be going again this Christmas if not for the Disney wedding cruise in September. Starting in '04 though, we plan on making DL an annual Christmas trip. Enjoy!!