I understand your concerns. CR will be tough to get in because they are still down a lot of rooms. WL is great and the boat makes it easy to get to. The lobby of WL is one of the best of any Disney hotel, probably top 3. There aren't any bears

. Getting a room with a view of MK will cost thousands more than you are paying now.
Its still going to more than double the cost of your room though, just barely double it there I think. Poly would come close to tripling it. You already got
free dining so there is zero chance of getting a discounted room, as you can't stack discounts.
Dont write off staying at the value resort as bad. Honestly, there is a lot of concern over travel time on these boards, but the HUGE MAJORITY of travel time is walking to your bus and waiting for it. This can be similar at any place for most parks. Only MK is fast by monorail for 3 resorts. WL has the boat to it, or contemporary then onto the monorail. Those monorail resorts still have to take buses to the other 3 parks. Epcot takes awhile by monorail after riding 2 lines and xferring.
So, having said that, you'd probably spend an extra 5 - 10 minutes being at the value in actual travel time to MK, but you will have to wait for the bus, its not usually long at any resort. Not really a big deal. The rooms will be bigger at the other resorts. I think the young kids will love the value.
The other option is moving up to a moderate resort, Carribean beach, Coronado springs, or Port orleans (there are two resorts there). You take the bus to where you need to go, and waiting 20 minutes for a bus takes some bad luck, it can happen anywhere though. The pool will have a hot tub there, the values dont have this. There's pool side bars and the grounds of all 3 are beautiful. By that time Carribean beach will have a brand new pool, less than one month old. It'd cost about half way between the WL and a value. Carribean beach has a little man made lake with sand and mini beaches to sit on (can't swim) and 7 pools in total at the resort. There are hammocks on the beach, there's an island in the middle of the lake that is absolutely lush with plants and there is seating there. There are playgrounds for kids on the beaches too. The bus stop at various places within the grounds so there is always a bus stop close. I won't go through each mod, but there's lots of info on them. My gf LOVED Caribean beach resort, it provides a lot more than a value does for when you get back to the resort after the kids tire out. This could be a happy median budget and enjoyment wise.
I wouldn't get too caught up in obsessing over the deluxes if its not in your budget. It won't matter, you'll have a great time wherever you decide.