It doesn't seem much of a vacation if you are setting an alarm for 6 am everyday!
I see so many people going for rope drop and I was just wondering...what time do you and your family wake up while on vacation at Disney. It doesn't seem much of a vacation if you are setting an alarm for 6 am everyday!

Disney just isn't the best spot for that.
We do always have a day off and usually one other day that we start out later in the day, but are still up early even on those days.
Of course depending on a) where you are staying and b) if you want to eat breakfast before arriving or at Disney. I like to eat before as at rope drop I want to get right to the rides. So I get up around 7-7:15 and stop at a McDonalds (yeah I know, gormet dining, but I'd rather get a fast bite and a coffee which McD's actually has a good brew, and eat lunch and dinner inside or at a nice restaurant). So I get to the park at 8:15 for MK and 8:30 for the others. That way I am at the gate at 9 when they open.
However, if you are a late sleeper then there is no point forcing yourself to get up super early. What is the point of getting to the park at 8. Sure you get to ride more rides with less wait time but you'll be cranky and miserable. So whatever fits your normal patterns is probably best!
Depends on what you consider a vacation. For us, we take advantage of Rope Drop every day to get on many attractions before the park gets crowded. That gives us more time later in the day for the pool and resort activities. We can get up at 7a and still make a 8a EMH (just depends on where you are, your transport and your group).
We get more done between rope drop and lunch than the whole rest of the day.
I always tell newbies that Disney is not the most relaxing vacation but it is the most fun.