I would never presume to tell anyone else where they should stay. For us (wife and I) we usually stay value, and that is usually PoP. Our favorite resort by far is POFQ abd we have stayed there many times. Now we can more than afford Deluxe but don't stay in those. We have on a couple of occasions but since we are AP holders and go three times a year, we can do three trips in value resorts for the price of one Deluxe trip. I guess a lot of it comes down to your touring style, your vacation style, and your personal tastes. I am going to work on my farm tomorrow and since our cabin/house is being remodeled and we can't stay in it, we booked a hotel in the nearby town (College Station home of Texas A&M) and will get a suite with a king bed, free breakfast, in room fridge, sitting area, pool, etc and it will be nicer than any value or Moderate room at Disney. Now I understand some will say no comparison but my reality is that I will pay $85 a night for that room. Translate that to WDW and you are paying obviously for the other aminities, not just the room. But a comparable room at a moderate is going to be nearly $300 a night at WDW. I cannot wrap my brain around that. Many will say then just stay offsite, it's cheaper. Yeah but I want to be in the Magic when we go to WDW so we will stay at a value.
So having said all that where you stay is up to you and I would like to say what you can afford, but really it's your choice. I pay cash for my vacations, and they are completely paid for when I get home. I am fortunate I can do that. But if I stayed deluxe every trip for a week three times a year then I would have a lot less money. I like to vacation other places so I will continue to stay value and enjoy our Disney trips as well as other trips and interests and retire in a couple of years.