We stayed there 1 night several years ago after a late afternoon arrival before checking into the Poly....lets just say it would not be my choice of a place to spend a prison term, much less a vacation!!
Pool was slimy. Playground was nasty and had broken euipment. I took my DD's swimming in the early evening and there were swarms of mosquitos, approximately the size of humming birds!! (yes, I know it was FL and they have lots of mosquitos, but we did not have nearly the infestation any place else we visited on the entire trip). The room appeared clean enough, but the carpet had burned places, and the sheets were ripped. Bathroom again was clean, but very worn. I think the worst thing was the door would not close properly so it could not latch or lock. When we called the desk, they sent a maintenance guy over who fiddled with it for a while and then suggested we might just want to move the dresser in front of the door when we were in for the night!!
The place was full of folks who seemed happy to be there...pool and eateries were busy the whole evening, but I sure would not have felt like it was a vacation.
I think $40/night sounds awfully high for what you got. Now it is possible that it has all been renovated now and the place is better maintained, but I wouldn't bank on it. If you want to spend $40/night, I think you could do a lot better with a 3* Priceline bid or watching for specials at some of the low end hotels over by Downtown Disney.