Family of seven here...I feel your pain. Like Jack said, there are DVC suites, but they are very expensive and hard to come by. Most family suites in the Grand Californian will run $4000 plus a week. You have two options...
Stay on property and get two adjoining rooms. This gives you two bathrooms, but discounts are hard to come by this year. Expect to pay $300+ per room, per night for a Disney resort.
The other alternative is to stay off property. These hotels can actually be closer to the parks than some Disney hotels, but you are getting standard "off the highway" hotels/motels.
You can either do two adjoining rooms off property for less than half the price of a Disney hotel. The Howard Johnson on Harbor is a good choice. Two of their adjoining rooms, depending on type will run about $150 a night.
There are suite hotels available. Some are not walking distance, but offer shuttle service...Residence Inn, Embassy suites, Homewood suites.
There are walkable suite hotels, but they are vintage motel like structures. The Desert Inn is very close to the parks. It is not luxury by any means, but it's location is fantastic (you can see the Tower of Terror across the street) and it's clean. We stay at their largest suite that can sleep 10. It comes with two bathrooms, four queens, and a full out sofa in the living area. We usually reserve it for $211 a night.
Hope this helps...happy planning!
