I have stayed at the HHI DVC and at a couple of Marriott timeshares on the beach (Grande Ocean directly on the beach and Surfwatch, a short walk to the beach from at least one of the buildings). I'd much rather stay on the beach. Realistically, there are a number of great restaurants on the island and you'll do more driving* than walking. But if a little Disney means a lot to you, opinions vary...it is a nice, well maintained resort.
*due to local restrictions, be aware that signage may be difficult to spot at night - so make sure your nav software on your phone is ready to go...