Well, I think we can all agree on one thing -- the regular (non-discounted) rack rates for the DLR hotels are crazy!! I have stayed at the GCH in the past, but I would not pay a non-discounted rack rate for the rooms, as I feel they are too small and dark (which bumbershoot previously stated). However, when I got a room close to the elevator, it was a breeze to just zip down to the lobby and onward to the parks. (I have also had a room that was not close to the elevator and was way off in the hinterlands somewhere.)
I had to chuckle at what DizMe said about people jumping out of the bushes along Harbor. I know what she means, except it happens on my own street (where I live)!

I remember walking along at night, trying to get a good look at the Supermoon a few years ago, and a (presumably) homeless person, rambling and babbling incoherently, emerged from behind a bush and scared me half to death!
Anyway, for me, staying onsite is definitely part of my experience. I don't do Fantasmic dining or WOC dining, and I rarely do any tours. I can eat all counter service meals if need be, with maybe only one table service meal for the whole trip. But I like being on Disney property the whole time, and being in what I feel is the Disney Bubble (and others' ideas of what the Bubble entails could vary from my own). I like taking a midday break and heading back to whichever Disney hotel I'm at (probably Paradise Pier, though I have stayed at all 3 hotels). I like being greeted by the CMs at the entrance with a friendly, "Welcome Home!" I like looking for hidden Mickeys in the bedspreads and carpets. I like wandering around the properties and chatting with fellow guests in the elevators. I like the early entry option to one park or the other every day. And when I have a room with a great view, I love the park views!
Also, because I live in Los Angeles, right in the middle of city noise, traffic, litter, etc., when I do a multi-day visit to DLR, I want it to feel like a vacation (not just somewhere that is 45 minutes from where I live), removed from what I would see in daily life. I like to feel like I have been transported elsewhere and am immersed in the atmosphere and concept of the destination I am visiting. I don't have the WDW hotel experience to compare it to, so I only know the DLR hotel experience. If I were staying in Vegas, even though that city is all about the hustle and bustle, I would probably stay in the most Vegas-esque hotel I could find, or a hotel that just represents Vegas (like Caesar's Palace). But, if I were going to a beach town for a vacation, or to a mountain resort, I'd probably stay in a cottage or a cabin, respectively. So, for me, to keep the theme going throughout my trips, staying in a Disney hotel is important.
Now, all of that said, it doesn't mean that I stay in a hotel every time I set foot in DLR. I don't have the money for that at all! I've taken plenty of day trips there where no hotel was involved, and I just went home at the end of the night. I always feel like something is missing, though, when I can't take that walk through Downtown Disney, then through the Grand Californian Hotel lobby and across the street to the Paradise Pier (especially during the holiday season, when the air is brisk and holiday lights and music are everywhere). For some reason, the Disney hotels put the perfect finish on my trips, and I have felt that way since the '80s, when I first stayed at the Disneyland Hotel and knew I wanted to stay there on every trip from that point on (that is, until I ended up staying at the other hotels too!

).
I want to try staying offsite at a Good Neighbor hotel/motel at some point soon, so I will have to choose which one. I want to see if I feel like I am really missing anything, or if I am just happy to have a bed and shower.