We've done both villa as a couple and onsite and now we are going with our daughter who will be 5 and I would NEVER consider a hotel room unless I had no other choice. We need room, especially as DD has aspergers and likes her own 'quiet' time. I can make a bed in 30 seconds but I can't watch a movie in the evening on telly if my daughter is sleeping in the same room as me.
Plus, as an only child, she will miss having other kids around so a villa would have been too isolating. We chose Windsor Hills and have booked a condo there, best of both worlds for us, its a beautiful resort so close to Disney it might as well be onsite and we have all the space we need to spread out and relax.
Don't get me wrong, I love hotels and when we go anywhere for a week or less I love staying in a nice posh hotel with room service, chocs on my pillow etc, but two weeks is just way too long to spend in a hotel room, for our family anyway.
Also, the room gets smaller and smaller as each shopping day goes by!!
Oh, should also say we are paying $80 a night including tax for our condo at Windsor Hills which is a brilliant price, cheaper than a value resort and I wouldn't want to spend 2 weeks at a value resort.