We stayed there last August. You'll be fine with five in the room, the day bed will be comfortable for even a 6' tall person. Make sure they know you'll be a party of five though, not all concierge rooms have a daybed.
The lounge is not my favorite. There is no comfortable seating, only tables and chairs. I found it quite odd, as all the other concierge lounges I've been in have had sofa's overstuffed chairs, etc. as well as tables and chairs. Because of that it just didn't feel warm and inviting, more like "get and eat your snacks and leave, this isnt a hang out place."
Three are tons of nearby places to eat. Epcot a a ten minute walk. The Swan, Dolphin, BW, and BC are all no more than ten minutes, more like 3-5. ESPN, Beaches & Cream, the YC Galley, the yachtsmans Steakhouse, the Cape May Cafe, The Big River Brew Pub, Tubbi's, Palio, Shula's, and more. I wouldn't suggest all of them, it depends on what kind of meal you are looking for.
Anne