I'm a Paradise Pier veteran (and 90% of my PPH stays have been during the holidays)!

To be honest, when I first began staying there in 2000, it was because the
Disneyland Hotel prices had gone up and PPH was a less expensive option. So for several visits the PPH was kind of the default hotel because I wanted to stay onsite and it was the cheapest.
Somehow, over the years, the PPH has grown on me by leaps and bounds and now I really enjoy it. I look forward to staying there. They have recently redecorated and freshened up their rooms, so you will be getting the newer versions of the rooms. My last stay there was in December and they had not redone all the rooms yet - but they upgraded me for free to an amazing Park View room and I couldn't get enough of that view! I kept gravitating towards the window every time I was in the room! I could see WoC and hear the music, but couldn't see any of the projections on the water, which is kind of the whole point of the show.
Seeing WoC from a PPH room is more like, "Hey! Look! I can see World of Color from here!" rather than an actual, viable way to see the show instead of going into DCA to see it.
The walk will probably seem far at first. When you get the lay of the land and realize exactly how close it is in relation to everything else, it will not seem bad anymore.
Basically, the PPH is right across the street from the Grand Californian. Do
not follow the signs on the PPH property that direct you to the parks, or it will seem like you are walking to New York! You need to take the short cut.
What you do is simply go out the front entrance of the PPH (past the valet guys), veer left and head to the crosswalk. Cross the street (Disneyland Drive) and voila! You are suddenly on the Grand Californian property! Go into the gorgeous lobby of the GCH and follow the signs to Downtown Disney or California Adventure.
When you head back to the PPH, just cut through the GCH lobby, out the front entrance, veer left and cross the street to the PPH! Easy!
The Goofy statue that ballarinamom mentioned may be missing for your stay, if you stay at PPH over Thanksgiving weekend. That statue is there year-round, until they put up the holiday decorations...and then Goofy disappears!
The PPH Christmas tree and decorations come out right after Thanksgiving is over - like early on Friday they bring them out, I think. If you are there long enough to see the tree in its fully decorated form, you will love it. It is just gorgeous. While the PPH does not have the same welcoming lobby environment like the GCH has, its Christmas tree is beautiful. The tree absolutely glows in blue-green lights, and the ornaments are jewel tones. It's prettier than an 'average' Christmas tree. I've posted lots of photos of it in our Christmas Superthread.