Alright, I know that this is besides the point of reality (since Disney is currently only discussing updating their kennels), but I'm wholeheartedly joining the NO side.
I love my German Shepherd. He is the love of my life (teehee.... don't tell my DH!) and it absolutely breaks my heart when he is upset or anxious or unhappy. We live in a very dog-friendly city and take him nearly everywhere that it is possible to take a large dog - stores, banks, coffee shops, my husband even takes him to work at his dog-friendly office building most days. We live in an apartment building in the downtown of the city, and so my dog is used to being quiet in close quarters, friendly but polite in hallways and elevators, and is always under strict voice control. My dog is well trained, quiet, friendly, and an ideal companion.
That said, I would NEVER IN A MILLION YEARS take him to Disney with us. He is well-behaved because we have him on a strict routine in familiar circumstances and familiar locations, and keep him exercised and entertained so he doesn't become destructive or mischievous out of boredom. However, even the slightest change in routine causes him to become stressed and upset - we ran a half marathon Saturday morning and had to leave the house at 4:00 in the morning to get to the start line shuttles. We returned (after a normally-timed absence) to a stressed out and crying shepherd. A simple change in our expected routine (leaving in the very early morning) caused anxiety - I can't imagine what being left in a strange hotel room for 12 hours would do to him.
I know that other hotels are doing it just fine, but the point is that I would not make the choice, as a responsible pack leader, to put my dog in that situation. Disney and dogs in hotel rooms are simply not compatible. I'm happier not worrying about my dog during my vacation, and he's happier playing with his new friends at a kennel-free boarding facility back home. Is he unhappy to be left behind? Perhaps at first, but at least he's in a safe environment, with professionals who can provide him with the care and attention that he needs.
Just my $.02.
Sarah