I think it really depends on what you look for in a hotel. After our last stay at All Star Music for one night this September, we decided that we will never again stay at a value resort. It's worth the extra money to us, to be away from all the kids/noise, have a bigger room, be in a hotel not motel (indoor corridors as opposed to outdoor ones), and have a private balcony. Those are things that we look for in a hotel. Our trips to WDW are to get away from things like reality

and staying in a room with an odd smell and kids yelling as they run down the corridor are just a bit too "real" for us while we're on vacation.
If we couldn't afford the deluxes, we would probably save up and take fewer trips to WDW, until we could afford the deluxes. But that's just us - you have heard from plenty of people who feel very differently about the situation, and for some people, a resort is just a place to lay your weary head down for a few hours each night. For us, our resort is a huge part of the magic we experience, and we like to hang out in our room, sit on the balcony, wander to the concierge lounge for a snack, and just generally spend large portions of time in our resort relaxing. We go to the parks every day, but I am a big believer in naps, because we like to hit the parks early and stay out late. Anyway, I think the way that you use your resort will play a big part in whether you still experience the full amount of magic in a value resort. Other factors, like how amenable you are to children and noise, will also play a role, but that is, of course, your personal preference.
Cheers!
Heather W