Are you talking about your next trip, or are you talking about your vacation future and possibly buying DVC? I'm going to assume the latter.
1) Stay in a DVC studio for approx 8 night vacations
This could work for your family of 4. If your kids are both the same gender it will work better, but even if you have 1 boy and 1 girl you can book one of the studios that sleeps 5 and each one will get a bed. The main advantage of staying onsite is the ease in which families can split up and make it back to the room on their own. For instance, the melt down of a young child doesn't punish the other one and one parent can take the one having problems "home" while the other one remains in the parks. Also, once your kids get older they can come and go as they please. You can still cook in a studio. We usually stay in studios and we "make do" with the microwave and toaster for breakfast and sometimes we will use the BBQ grills for dinner. Laundry can be a PITB compared to a 1BR but it's not that bad and still free

. Transportation to the DVC resorts is also (currently) free from the airport so you don't have to rent a car unless you want to. If you do, parking is free at the resort and at the parks. The disadvantage is that your family will eventually outgrow studios. We are at that point now with our daughter (only child). I don't mind sharing a studio with her, but I don't want to share with her boyfriend and bringing the boyfriend is the only way to get her to go with us. We now have to look at 1BRs which are twice as expensive, renting 2 All Star rooms (which is why we own DVC) or staying offsite to accommodate him.
2) Stay in a 1 BR DVC villa for approx 4 night vacations
4 nights is not enough at WDW, so option (2) is out for me.
3) Stay offsite for approx 8 to 10 night vacations.
This is also a good option. The main advantage to this that the adults get their privacy. At the very least, they get their own bedroom but I would probably look into a 2BR unit if I were to buy another timeshare. Most off-site timeshare villas have kitchens and laundry in the unit (like a DVC 1BR) which is an advantage over a DVC studio. Some timeshares have pools that rival the ones at WDW. You are also off Disney property so you have the ability to eat offsite and save some money over WDW restaurants. Since you're driving to the parks you can scope out possibilities throughout your trip and make plans to eat at places rather than settle for another boring Disney counter service meal for twice the price. The disadvantages are that you have to rent a car and drive to the parks (I don't mind myself, but some do) and then pay to park (or buy Annual Passes). That adds at least $40-$50 per day in expenses. You are also joined at the hip in the parks because everyone came in the same car.
One thing to also consider when deciding between DVC and another timeshare is the way that DVC has held it's value. My DH got roped into going to some weird presentation to get us "out" of our timeshare. I had no interest in getting out of our timeshare so I have no clue why he even signed us up for it. The "gift" was complete scammy garbage so it was sooo not worth our time. They were selling shares into some hybrid system. I think you sell your timeshare to them and then they give you shares in their system which is easier to use than Interval International. I don't know, I didn't really follow it since he stopped trying to sell it to us when we corrected him that he could buy DVC for $1 per point. He took our information and was supposed to come back with a price of what our DVC timeshare was worth (200 points BWV, 100 points AKV) but didn't show us the numbers and admitted that he couldn't sell us anything while every other salesperson was actively working their customers from other timeshares. In reality, we can sell our AVK points for more than we bought them for and our BWV points for more than twice what we bought them for. Now granted, there is inflation involved but we are still WAY ahead on BWV and we'd break even on AKV. YYMV of course, but in general DVC holds its value better than other timeshares.