We had been reading lots of reviews about the decline of 'Ohana lately, but we had dinner at there on 8/3/10 and it was absolutely wonderful, probably our best meal we've had there yet! I am working on my full dining review, but I will have some pics up from our dinner there some time in the next few weeks, so watch for them.
We all thought that the chicken was a great replacement for the turkey, it was so moist and flavorful! The steak was cooked to a perfect medium-rare (I even took a pic after I cut it to show y'all). If the meats are delivered to your table not cooked to your liking, you can tell your waiter what is wrong and ask for meat from a different skewer.
It was a wonderful experience that we all enjoyed and would recommend to anyone.
Having said that, we have never dined at Narcoossee's, but I don't see how you could compare the two. They are meant to be completely different types of experiences. 'Ohana is a family-style restaurant with games for kids going on in the dining room and a great big firepit. It is bustling and loud with good (we thought most was GREAT) hearty food with Asian flavors. (If you don't like Asian spices like ginger and soy, you might prefer to skip this restaraunt, as I think at least many of the things are marinated or infused with these flavors, and lots of garlic!). Narcoossee is a signature dining experience with a more upscale, elegant feel, fine dining on gourmet food. Here you have to choose from a menu, which may be hit or miss, mostly hit from what I read. At 'Ohana you can try everything on the menu and ask for more of what you like!
Are you looking for something relaxed and fun, or something more upscale and elegant? Apples and oranges!
We have an ADR there for our Nov trip and are really looking forward to it. The menu has actually undergone several changes since then, I understand. 
If we don't love it, so what?? We have 12 other dinners to look forward to.
Thank you for the recent report! Glad to hear your family enjoyed your meal there. We have been there a couple of times before, but not since '05. It was our family favorite!We have an ADR there for our Nov trip and are really looking forward to it. The menu has actually undergone several changes since then, I understand.
I have a question...our kids are very close in age to yours (teens) and I was wondering where they put your family in the restaurant...were you in the main room where the kid's activities are, or at one of the outlying tables? We've been in both, but I think this time we might enjoy being in one of the outlying areas and not in the middle of all of the activities since our kids won't be participating. I realize there are other factors involved in seating guests...perhaps we'll just ask for a quieter table this trip.
We were seated in the room all the way to the right as you walk in. There was a wall/divider between us and the main diningroom and firepit, and we were at a window table, but the windows looked out over the area where that stream flows between the GCH and the volcano pool. We couldn't see the castle. It was pretty quiet and laid-back over there; we still could hear the games/singing going on, but we could easily hear our own conversation over it. The adorable entertainer came through with her ukelele and a parade a few times, which was fun to see. It was perfect for us.
Stick with Ohana. It's fairly unique in this day and age, whereas you can find plenty of "fine" dining establishments where you live.