I agree with MamaKate on many points, but in order to pick your hotel, you're going to have to consider many things:
1)Dining--do you want a hotel with more dining options? The DLH has more restaurants and a greater variety than PPH. PPH has a sandwich/snack place, a sit-down restaurant (which is also the character breakfast restaurant), and a Japanese restaurant. DLH has a bar/lounge, a fast food/snack stand, a sandwich/snack place, Goofy's Kitchen (which is their character breakfast restaurant), a sit-down restaurant (which I wasn't impressed with).
2)Pools--there is just no comparison to the Neverland Pool. The PPH has a regular, rectangular pool with not a lot of theme. There's a hot tub, a wading pool, and a super cool slide. But the Neverland Pool has a pirate ship! And the hot tub has the Little Mermaid! There are two slides, one for big kids and one for little ones. The pool is huge!
3)Grounds--the PPH doesn't have any to speak of. It was a regular hotel until Disney bought it. The DLH has waterfalls, topiary, toy boats, and lots of places to explore. I really hope that the water show is back when we go this fall! It's worth seeing at least once. Of course, you don't have to stay there to see all of this stuff, but it's more convenient if you're already there.
4)Laundry--maybe a stupid thing to worry about, but if you want to wash your clothes, don't stay at the PPH. They don't have a laundry room, so you'd have to have your clothes dry-cleaned.
5)Distance--in my opinion, the distance between the two hotels is negligible. The walk to the monorail may be longer from PPH, but with a shortcut through the GC, the distance to the main gate may not be much longer than the walk from DLH. Also, we were able to cut through the GC to DCA, making the PPH only a few minutes from DCA. Of course, all of this does depend on which tower you end up in, and again, it's based on nothing more substantial than my opinion.
6)Theme--I love the PPH theme. I adore having all the little suns and beach decore around me. I love the blues and the golds. I've never even been in the DLH--how odd is that? I've been all over the grounds, though. So I can't tell you much about the theme. I hear good things about it, but the pictures I've seen aren't that exciting.
7)Price--yes, we all know that the PPH is less expensive. Many people feel you get what you paid for. I felt that the service was wonderful at the PPH, if it makes any difference.
8)Room Size--I've been bad, and I didn't write down the research I did, so all I have are hazy memories. I believe that I found out that the average room at DLH is about 50 sq. ft. bigger than the average room at PPH. The rooms at PPH were very big! I think, and don't quote me on this, that the rooms at PPH are supposed to be about 250 sq. ft.
Now, despite my professed love for the PPH, I've been talked into staying at the DLH this fall. I really, really hope that I don't end up homesick for the PPH!