Personally, I like the idea of moderate suites...bigger/nicer than AoA suites. With my crew, those suites are not at all appealing in terms of sleeping arrangements. Yes, it's more space, but I'd honestly rather "squeeze" into a deluxe that sleeps 5. The deluxe has two *real* beds and a comfy (to my youngest) Murphy bed. I can't see how a pull-down table bed would be comfortable for two. Plus, and I know this may sound snobby, it's a value - the other amenities are just not there.
However, I wouldn't stay on property for more than 4-5 nights in a deluxe because at some point, we need our space. Our last trip that is what we did - stayed at BCR for 4 nights and then off-site 2BR for 5 nights.
On the other hand, Disney is missing out on the dollars that are being spent on rented DVC points. The cost to rent a studio or 1BR is more than the AoA suites, but the accommodations (and locations) are nicer, too. And people rent those points like crazy!
So, if Disney did moderate suites that are a step down from DVC and a step up from AoA, and priced it around the same cost to rent points, they could recapture those dollars and maybe entice those of us with "large" families to stay on property longer.