We usually stay in the Park Vue Inn off property, but we did stay in the Grand Californian once with a family group, and it was a beautiful hotel with a great location, although pricey. I'm not sure about package deals.
Bringing our own double stroller is a lifesaver. It takes up a bit of space in the hotel room, but has been very worth it not to have to worry about rentals and to be able to use it to walk back to the hotel at the end of the day with tired kids!
I always make sure to bring snacks, water bottles, and sippy cups in the backpack and take several breaks throughout the day for a snack and a drink. I'm not sure if your oldest is potty trained, but if she is, make sure that you ask her if she needs to go potty a lot during the day, and if she always says no, then tell her to sit on the potty and try. I know my DDs both were so excited at
Disneyland that they wouldn't realize (or maybe they just didn't want to take a break from the fun?) that they had to go until they REALLY HAD TO GO, and it was usually at a bad time (when we were almost at the front of the line, or on Pirates sailing through the Bayou...

)
We do rides first thing in the morning when lines are usually shorter, then when they need a change of pace, we go somewhere where they can play and move around. The little playground at Goofy's house is their favorite place to play (Toontown also has cars they can sit in, and some fun interactive areas). They also like the Redwood creek area and Tom Sawyers Island (err, pirate's lair?). Just be sure to follow them closely if you go to Tom Sawyer's Island so they don't get lost in the caves, and some of the caves have some scary things in them. They also enjoy playing in the interactive area at the bottom of Tarzan's treehouse.
We always go back to the hotel room for an afternoon nap. We have tried powering through the day without one, but that did not go well for us, although some families can pull it off.
The Baby Center on Main Street is awesome. They have large, padded diaper changing stations, toddler sized toilets, high chairs and a quiet nursing area.
If your kids like characters (I know some are scared), a character meal is a fun way to meet several characters without having to wait in long lines. I think they get more interaction with the characters as well.
Someone on this board posted about their idea to show their kids
YouTube videos of some of the rides before their trip so the kids would know what to expect. I did this with my oldest DD with some of the scarier rides (Snow White, Pinocchio, Mr. Toad, etc) before I took her on her first trip at 19 months. I do think it helped a little, although some kids just don't like those rides, and I am of the school of thought that I don't force them to ride rides they don't want to go on. It did make me laugh that on that trip she always referred to the Snow White ride as "Witch". That is probably a more accurate name for it.
Disneyland has a lot to offer, and I think even very young kids and babies can have a wonderful time!