You can usually get a decent deal if
Disneyland has a package going. Buy 3 nights, get 4th free. etc. Sometimes airlines offer deals where kids fly and stay free. The packages usually come with some other privileges/incentives.
AAA has packages too with several perks. I would never do a package at WDW - we always get a better deal with room only discount code (we don't do free dining). Disneyland really doesn't have a free dining program like WDW. They don't have anywhere near the volume of restaurants in the parks at DL that WDW has.
I personally would NOT go to DL over the holidays - you are going to encounter huge crowds and DL does not have the space inside the parks (including 4 parks plus 2 water parks) that WDW has to handle the crowd levels. There are a LOT of attractions packed into DL park. You will need more time there than in the DCA park just to get things done. At WDW they are spread out through the 4 parks.
If you have the money, I would stay on site. Otherwise, for a lot of people it's not as big a deal to get a room off site in CA compared to WDW which has so many benefits to staying on site. In CA there are tons of hotels and restaurants right on the same street as the parks. Very different from WDW. Even staying on site in CA doesn't feel resort immersive like you get at WDW. The real world is right there.
If you go on the DL board that a PP linked, you won't get as quick of responses as the WDW boards, but you can read up on the threads and get some help. If you plan well and go at a different time you can get a lot done in 4 days. I would find the link that shows which attractions DL/DCA has that WDW does not have and make sure to hit them first. Then the ones that are duplicates but done a bit differently than WDW.
In DL we love the theming of Blue Bayou restaurant inside Pirates. Also Cafe Orleans and Carnation Cafe inside DL. All three are sit down restaurants. We just don't care for any restaurants in DCA park. You have to call ahead to get reservations for most of the sit down places. (Come to think, maybe you can do it online now, I'm not sure about that.) We've never been willing to pay the money but Napa Rose restaurant at the Grand Californian hotel has won several awards for food and wine. The Storyteller's Cafe at the GC is beautiful and has great corn chowder plus a character meal. Steakhouse 55 at Disneyland Hotel is very upscale decor - old Hollywood. There are also several restaurants in downtown disney. We like Ralph Brennan's Jazz Kitchen. Compass Books Cafe closest to DL hotel has THE BEST espresso drinks!!!!! But just understand that the dining situation is a completely different ballgame than WDW.
If you don't want mostly sit down places, there are quite a few mid-range dining options at both parks.
Disneyland's official website has a general overview. If you click on on "Where to Eat" at the top of the page you can view dining in the parks, hotels or DTD. Here is the link:
http://disneyland.disney.go.com/dining/
I would spend some time looking over the official Disneyland site for all aspects of your visit, not just dining. It will give you a point of reference.
Have fun!
The band group actually stayed at a hotel near Knott's Berry Farm, but my family (minus my older DD) took the shuttle to DL first thing in the AM on our own. Not much of a crowd, until about mid day. My older DD had activities to do with the rest of the band, so most of the time, she wasn't with us.
