We've stayed at the Dolphin many times and it has worked out great. You still get amazing transportation, EMH, and 60 day FP+ reservations. We're a family of 5.
We are a family of 5 and LOVE CBR and the AOA suites. We have done 2 value rooms (POP) before but it's not possible for them to guarantee a connecting room (we've always gotten one) so it's not something we like to chance! Our fave is the Contemporary hands down and AKL comes in a close second but the CBR rooms are nice as well and where we are staying before our cruise in October!
Staying off site gives you more space for your $£. In 2014 we stayed at Caribe Royale hotel. Very close to Disney. Rooms are all suites. They also have 2 bedroom condos. We stayed in a suite with 2 Queen beds in one room and a sofa bed in a separate room. Lots of space. We really loved the breakfast buffet. It has a sister hotel next door Buena Vista Suites which is cheaper $£s per night. The Caribe Royale has a lovely pool with a slide. If you want loads of space then a villa is a good option.
How's the park transportation?
http://www.thecaribehotelsorlando.com/media/1029317/cr_disney_shuttle_schedule_-_march_2016.pdf
Looks like you have to reserve your spot in advance. And like most off site hotels it drops you off in the farther out lots.