My family and I are staying at the POFQ in September. I am looking at upgrading to the AKL. this is our first time staying at a Moderate, and have a chance to move up one more level. we have always stayed at the Value Resorts, All Stars Resorts. I am afraid to move up. From what I hear you tend to lose some of the Disney magic as you move up. i heard that the resorts tend to shy away from the Disney theming and more towards the theming of what they are going for such as CBR or such.
Now we are going with a 3 yr. old, and the AKL has a child care in the evening. that is a big plus.
AKL is, quite simply, amazing. We stayed there with a 5yo and a 3yo last year, and they both loved it. The pool was great for them with the zero-entry area (and lifejackets so that they could be more independent in the water), the food choices were very good, and they had animals out the window. I think the older daughter loved it more, but they both had a great time.
The theming of the resort is incredible, and I think that the Disney Magic is definitely there. I have stayed in both POFQ and AKL and in my opinion AKL has more Magic than POFQ. The magic is not the "see the castle out the window" or the "giant Buzz Lightyear outside" or even the "Mickey-shaped pool" kind of magic. It's a resort where I felt genuinely welcomed every time I came back. It was a resort where my kids could join in a Djembe drum circle in the evenings. It was a resort where there were animals outside the window. All of that was pretty magical.
As a final thought, we stayed at BLT last month, and I would have rather stayed at AKL or AKV. So I would definitely vote for the upgrade if you have the room in your budget for it.
Also, though, please note that the child care (Simba's Clubhouse, and, I believe, all of the others) is for ages 4-12 according to Disney. When we stayed there last year, we used Kids Nite Out instead because our younger daughter was 3.