We stayed there in January with my 4 and 5 yr old and it was just fine. We felt safe and enjoyed having a kithenette... and the free breakfast every morning.
I didn't notice any peeling paint, etc. They apparently just did a massive upgrade/overhaul last year. The pool is nice--- and since all the hotel doors face the inside you can see the pool from everywhere. Nice option if your group wants to swim but you want to keep an eye on them.
It was quiet. There is a 7-11 right on the corner, a Walgreens and a Publix right across the street. Also, the town of Celebration has a little carnival a couple blocks down. Nice distraction at night if you so desire.
Now, if you are looking for a Marriott type of hotel then this isn't the place for you. There is no room service, etc. but it is clean, safe and very affordable!