When are you going? I may have missed that info in the above posts. I saw that you mentioned really wanting to see PTN and DL Forever fireworks. Unfortunately, the 60th celebration will be ending on Sep 5th and it doesn't look like DL Forever will be shown during Halloweentime at all. It's not known at this time if DL Forever will come back during the Christmas season or if they will only show Christmas fireworks. Also, it's not known if PTN will continue after Sep 5th. It was curiously left out of the press release detailing the events during the Halloween season. Anyway, I just wanted to point that out to you so you're not caught off guard if they are not being shown while you're there.
Regarding hotels, any of the hotels on Harbor Blvd, on the same block as DLR, are good bets. However, most of them are MOTELS, not hotels, which can also be surprising. I have stayed at Tropicana, which is almost right across the street from the DLR entrance, and it was perfectly fine, but nothing fancy. A good rate for that place would be around $150-$160. You may also want to check out
www.disneytouristblog.com. There are some really good Disneyland planning guides and the hotel review page is especially helpful:
http://www.disneytouristblog.com/disneyland-anaheim-hotels-reviews-rankings/
If you can afford to stay onsite DO IT, you won't regret it! I personally love the DLH, and
@gottalovepluto has given you some good tips for finding discounts. You could also do a split stay, say two nights offsite and three onsite to save a little money.
Good luck and happy planning!