With young kids, the closer the better. I have a 7 yr old and a 20 month old. Young ones need naps and everyone needs a break. We didn't even do the pool when our oldest was little... so HoJos water area and pools wasn't a big sell for us. But we did stay there once because they offer great rates. I know it a favorite among parents but it was just ok.
Personally we like staying in the Disney bubble. And since we have small kids and DL is a staycation for us, we spend a lot of time in our room.
Of course, that isn't always financially possible. We have stayed at the Hilton a few times. It's further but they often have last minute rates under $150 on a Saturday. You can also get a view room and see the fireworks. It's a business class/convention hotel. The walk is doable. But on hot days, we walk across the street to the toy story lot and catch the shuttle. I prefer this over the tram from Mickey & Friends. It's a bus and the lines are orderly.
Speaking of which... I hate boarding the tram with a full size stroller. Leaving DL is a chaotic mess. (We use an umbrella stroller now but still doesn't help that end of day rush to the tram.)
I would stick with your HoJo plans even if you have a smaller room. Also I know Anaheim was cracking down on AirBnb/short term rentals. Not sure if it has taken effect.