We particularly enjoy WL, and just did a trip in September in two rooms with grandparents, the two of us, and our almost 3 year old daughter. We looked at both the Villas and the regular hotel rooms and ended up going with two standard view rooms, and were fortunate enough to get connecting rooms which worked out perfectly.
WL is the least expensive of the MK area resorts, but has slightly smaller rooms than the others and no direct monorail access. Instead there is boat service to MK and to the Contemporary Resort and Fort Wilderness. There is also bus service to all parks, which Monorail resorts do not have. We really like that it is relatively small (compared to other WDW resorts) and is all under one roof (which is great for the rain). The theme is like a Pacific Northwest lodge, which we enjoy but if you prefer something else each resort definitely has a unique feel.
While each Disney resort has it's own unique advantages, overall you can't go too wrong by staying onsite. All resorts have transportation to all the parks, and you can visit whatever other resorts you want. Upgrading to a Moderate gets you bigger beds and more theming, while upgrading to a Deluxe gets you interior hallways, rooms with balconies, and generally better locations (like right by MK).
Enjoy your trip, and the planning! It is definitely part of the fun.
