My family and I stayed at the Hilton on one of our visits to
Disneyland and thought it was pretty nice. Our room had an awesome view of the fireworks from the floor to ceiling windows which I believe are standard in every room. They also have a great pool area with a nice size pool and four hot tubs (I think).
We would've gone back to the Hilton except:
1. It is a rather long walk to the front gates of DL-about 15 minutes. It's not a bad walk going to DL, but in the evening and after a long day of walking already, that walk back to the Hilton seems like a long, long, long way. Especially with tired kids in tow.
2. If you have a car, they charge $12 per day to park in their parking garage (although most hotels charge a facility fee around $12 per day anyway, which usually includes parking). We had a car when we stayed there and drove to DL and couple of times, and after you add in parking fees for DL, we ended up spending $20 per day just on parking. It's not going to break the budget or anything, but still, that's $20 that would be better spent on some food or a souviner for one of the kids.
Overall, I highly recommend the Hilton, but it's not in the most convenient location for DL, although it's not the worst either. The views of the fireworks alone almost makes up for the lack of convenience (but not quite for us). Maybe when our kids are a little older (they're 6 and 2 now) they'll be able to handle the walk a little better.
As far as nearby restaurants, I'm not sure what's close by. When we stayed there, we either ate at their restaraunts on site, ordered room service, or we ate at the parks (DL & DCA).