I have heard some good reviews lately on the Desert Palms on the DIS boards and I noticed they have an AP discount on their website.
We stayed at the Ramada Maingate in the summer of 2010 and although they don't have an AP discount, they have a lot of really good rates on their website you might want to check out. They recently have posted pictures of their remodeled room and remodeled breakfast area. We loved staying there and it was about $90 a night, with breakfast.
The Ramada is an easy walk, way closer than HoJo's. Looks like the Desert Palms might be about the same as HoJo's or slightly farther? Not sure about that.