Thanks for all the good replies so far. I understand the idea of going to a 4/5 star resort, but we actually had looked at lots of options including Clearwater Beach, Marathon Key, OBX, Cape May, Poconos, & Lake Pacid. To be honest the prices were not all that much less than WDW Deluxe, especially considering that they didn't include food like club level does. The last week of July was surprisingly busy/booked/expensive at those other places. And there really wasn't as much to do as what the entire WDW complex has to offer.
When it really came down to it, what our kids really wanted most of all was the Disney feel. For them, it was better to have a WDW trip with no park days than to have a trip to anywhere else. And the prospect of sleeping in late and taking it VERY easy is appealing.