BW views are always nice. I would request a higher floor. That's a personal preference, however. Better views, less noise. Though I've never had a "ground floor" villa (I believe there are a few in the "Crest O' The Wave" section), I wouldn't want to be that close to the action. We love BW views, but always try saving the points with standard when available...
Generally speaking, the Boardwalk entertainment starts around 6 PM. Jugglers, magicians, etc. They're a lot of fun and very interactive with audience participation (usually they have kids as part of the show, but sometimes adults, too). If you imbibe, the options are plentiful - from the quiet Belle Vue Lounge inside, to the fun Abracadabar, there's plenty of drink, even a margarita stand on the Boardwalk. Pizza take out window as part of Trattoria Al Forno, shopping at the Screen Door, movies nightly on the Village Green... there's plenty to keep your attention. It can get busy, but it's not like a theme park type of busy. You can rent Surrey bikes, work out in the gym, swim in one of three pools, or hit up the Community Hall. My family has always felt that the Community Hall (at the Boardwalk and everywhere else for that matter) were greatly under-appreciated!
Have fun.
Good luck with 4 adults in a studio - you're a braver person than me!