Onsite at Universal is every bit as good as onsite at WDW, IMO. The proximity of the parks/resorts/CityWalk makes for a special experience. FOTL is even more attractive now that Universal has officially done away with Express Pass (the only way you can join the Express line is by staying onsite, or by paying for Express Plus).
The restaurant choices at USF are great. With a few exceptions (V&A's, California Grill, bluezoo, et al), we've grown out of the WDW options. We find we only enjoy the resort eateries these days - we struggle to find anywhere we really want to eat at the WDW parks. Of course, your dining preferences could be totally different to ours. We're real foodies and our girls are grown up now (21 and 18). Mythos at IoA is way better than any WDW park restaurant (with the possible exception of Bistro de Paris which we've never got around to trying).
We always seem to eat at Hard Rock Cafe. The food is just OK - not great, not bad - but it's such a cool place. We've also enjoyed meals at Emeril's (CityWalk), Tchoup Chop (RPR) and the Palm (HRH). We love Margaritaville, but more as an adult evening venue (definitely not for the food, which is just OK). We've eaten once each at Nascar Cafe and NBA City and wouldn't bother going back.
If you've got time, you could wander over and check out PBH. Sal's Deli is a good spot for lunch and Mama Della's makes an unusual change for dinner. Bice is the new fine dining option there, but we haven't tried it yet - I can't believe it could live up to its forerunner, Delfino Riviera which was truly superb and the area's best kept secret (obviously too well kept, which is presumably why it didn't survive).
The Mummy is currently my favourite coaster, although I am a huge R'n'R fan (and I rode Expedition Everest at the AP preview last month). Your girls will also love Shrek 4D.