we have stayed at both in the last 8 months, and they were both very impressive. It really depends on your own tastes. The resort is closer to Disney, and close to dozens of restaurants and shops, but was in a much busier area. We were in a beautiful newly renovated 2 bedroom in the Fountains area, walking distance from 2 pools, a food court, and an internet room. We had a nice big screened patio,with a stairway to the pond. The only downfall, for us, was the resort is mammoth, and very spread out.It has 7 different areas, and it was a hike to the store and restaurant.
Villages is a little further from WDW, but still a short drive. It is located on I-Drive, so you can take the trolley to a couple outlet malls, and just about any restaurant you can imagine. It is in a quiet area of I-Drive, so traffic is good.The Villages are much smaller, built around a central pool area (with 2 pools and 2 hot tubs), and everything is a short walk away. We had a 1 bedroom, and it was a little older, but still nicely decorated. Our room had a small screened patio overlooking the pond. There is no food court, only a small restaurant with takeout. The only issue we had at villages was parking, and some noise from construction. During the day, villages was much quieter.