I love the GCH but have to say the DLH has some really nice features. You are guaranteed some sort of third bed. Either a daybed or a rollaway (rollaways are free at the DLH). The GCH has some daybed rooms, some bunkbed rooms and neither of those are guaranteed. If you don't get one, than you get a sleeping bag. And the bunkbeds are not full length twin beds, so older kids won't fit in those. If you have three kids or kids that can't sleep in the same bed, this makes the DLH's offerings really nice!
The DLH also has lots of grounds and things for kids to explore. As others have said, it has the koi ponds and waterfalls, a totally separate quiet pool that has a large sandy volleyball court, small sand area at the main pool, an arcade (GCH has no arcade, some kids like to save their quarters for this), and it also has the remote control jungle cruise boats. My kids love those. I think as far as main pools the two hotels are about even. The Neverland Pool has the Peter Pan theming. However, the GCH pool is right next to a theme park, at night the lights of the Sun Wheel and other Paradise Pier sections of DCA are so pretty and you just feel like you are right there. Because you are! The DLH's pool does have more in the way of landscaping and the completely separate Cove Pool is a nice feature. The GCH has three pools, but they are all joined together as I recall. I have been in the heat of summer at both hotels, and they both get crowded in the afternoon. I didn't find one better or worse on the crowd fron as far as the main pools. Having the separate quiet pool at the DLH is nice, it does generally stay pretty quiet. I think a lot of people don't even realize its there.
The DLH rooms are large and bright. However, the GCH rooms have balconies and have a much more deluxe feel. Nicer linens, towels, turndown service, the whole place feels very much like an upscale resort. It has the spa too which is nice for the adults. But for a kid oriented trip to
Disneyland, the DLH is awfully nice. And much cheaper.
I don't think you can make a bad choice. I tend to go with the DLH, even though I use DVC points and the GCH isn't that much higher "cost" on that front. We just love the DLH's room size and bed arragnement and the whole place (esp. the grounds) really make our family feel like we landed right smack dab in the magic. My daughter loves to fall asleep at night to the glow in the dark pixie dust wall paper at the DLH. I love the craftsmen style of the GCH but that was lost on my kids! They did really love the GCH however, and never one time missed the DLH. But for the next trip when I asked where they wanted to stay, they both said the DLH.
Someday, dh and I will go just the two of us and do a week at the GCH. Do the spa, Napa Rose, all of that. Until then, its the DLH which doesn't feel at all like a bad compromise!