There is no comparison between Dolphin and PO...stay at the Dolphin. You wouldn't have to ask me twice. Dolphin is a deluxe resort with wonderful ammenities (because it isn't disney). The restaurants are wonderful, Tubbi's is open 24/7, the food from there is like homemade. The heavenly beds, the wonderful bedding.
Apparently the holiday decorations are also wonderful..large tree, many holiday activities for kids, train around the tree. Check out swandolphin.com for all the info.
For me..the choice is easy. We were not at all impressed with PO..won't stay there again...as far as the Dolphin, we have stayed many times and will stay many times in the future.
Good luck!
ps...you definately won't be losing any disney magic..believe me. Probably gaining some, as the housekeeping staff is also much better at the Dolphin, so your room will be clean.