Hi in Lisa in NJ! I love WDW at Christmas! We've gone twice in early December 1996 & 1997 (it was slooow season back then) and 3 times over Christmas and the week between Christmas & New Years: 2004 WL AP rate, 2005 POR
AAA rate that started in value season and continued into holiday season, and 2006 POR holiday rack rate. Sometimes discounts on rooms are available but nothing is for sure and they go quick; usually you have to check in before Christmas to get a discount. I think the discounts were announced sometime in Sept? (Check mousesavers website for history). When we go over Christmas its to relax, have some good meals, see the beautiful decorations, see a
few shows and ride a
few rides; if its super crowed or crazy where we are, we leave and go somewhere else; its easy enough at WDW and we use cabs, they are worth the price!
To me holiday rack rates at POR are worth the money and at WL they are not worth the money. When we stayed at WL we didn't hang out in the lobby much because it was crowded, didn't swim because it was
cold and hot tubbed once because it was
cold 
It was also cold at POR but POR is beautifully decorated and the public resort areas were not as crowded as WL and the room rate was 1/2 the price

Our stay in 2006 started after Christmas and I did notice there was not as much holiday merchandise or treats left .. I couldn't find a gingerbread man dipped in chocolate any place! And I tried many places!! I also think All Star Music Family Suites would be a good place for a Christmas visit and plan to stay there some year; public resort areas will be at capacity but you can plan for and around it. Sorry for such a long post, but I love WDW at Christmas and I think you will too! Have fun
