My family has been there many times (we only live 15 minutes away so it's like a mini vacation). The Living Social deal is great, especially with breakfast included. I've never been to Great Wolf so I can't compare the two, but Great Escape is great. It's really nicely themed and not too big. The water park can get crowded (especially weekends) but it's generally really manageable. As far as food goes there are only a couple options on-site. There is a restaurant called Tall Tales but we've never eaten there. We never cared to spend the money. There is a counter service eatery in the water park plus there is also a Johnny Rockets on site (a tip: if you sign up for Johnny Rockets email club you can get some great coupons for freebies).
The town of Queensbury is just to he south. You'll find supermarkets, restaurants and big box stores. To the north is Lake George which is beautiful. There are shops, restaurants, arcades, etc. it's only a five minute drive.
Let me know if there's anything else I can help you with!