We live about 30mins from HersheyPark. We go every year with MIL company picnic. I am currently planning my first WDW trip so I can't compare it with WDW (I'm sure it's a much smaller scale) BUT, I think HP is a great place. My oldest son has always loved the characters (HersheyBar and Kiss are always around, but try to find the more elusive Symphony and Special Dark)
Yes, I have seen the lines out to the "2 hour wait from this point" but that is at the "big" rides. My kids are little so we haven't had to wait that long for anything. The kiddie/smaller rides move pretty fast.
I think it's a fun park (I believe it was rated the #1 theme park in the northeast) and don't forget ChocolateWorld (nothing beats a free chocolate bar at the end of the ride)