One of the real pleasures of VWL is that there is a relatively heavy (for Florida) pine forest surrounding the building, which really gives the feel of being in a National Park or the Pacific Northwest. The downside to the trees is that it greatly limits the views from the rooms and balconies. I don't think any room has a clear view of the lake through the trees. We have stayed in several fifth floor villas on the lake side and never been able to see the Electrical Water Pageant. However, it is short walk to the beach, and very pleasant to sit in the beach chairs and watch the pageant, and also the high fireworks from Wishes. While we have had villas with limited Wishes views, we have always had to go to the lake to see the Water Pageant. It is always a highlight of our stay.
The villas are all in one building a short walk from the main hotel. Most of the services, including all the restaurants, are in the main building. The Mercantile (store and light groceries) and arcade are the closest facilities in the main building to the villas. Although sometimes at night after a long day in the park it seems like a long trip to Roaring Forks just to refill my mug, in reality nothing is very far from the villas.
Hope this helped, and have a great trip.