First, I would recommend reading this wonderful guide of advice: "Hydrogy's DLR guide for WDW vets". So much valuable info-
http://www.disboards.com/showthread.php?t=1162599
As for your specific questions...
Yes, there is still the Blue Bayou restaurant in the Pirates building.
There is still a monorail but it technically "runs" to Downtown Disney, which is right next to the
Disneyland Hotel. The station hasn't moved itself, but the hotel area did a little reorganizing about 10 years ago when Downtown Disney was built.
With regards to staying at the Disneyland Hotel, many people around here would not necessarily recommend it. Some swear by the "immersion factor" and many WDW vets expect this from their resort, but at DLR many people spend only a little bit of time in their room/hotel so a (much) cheaper option is staying across the street at one of the hotels on Harbor Blvd. Not only is it cheaper, but there are several hotels that have a shorter walk to the parks than from the Disneyland Hotel.
Walking is the main mode of transportation at DLR, which is a MAJOR difference from WDW where boats, buses, monorails, etc. are used. Therefore, one main priority of many people around here is convenience to the parks (aka walking distance from hotel) and staying offsite isn't a huge disadvantage at all. I would only use the monorail if I were going from the parks to Downtown Disney OR if I were taking it from the parks to the Disneyland Hotel/Paradise Pier Hotel after a long day and I didn't feel like walking the whole distance. But even after you arrive at the DTD station, you may still have to walk a bit to your room, especially at the Paradise Pier Hotel.
