The DLH is beautiful, we stayed there on our first trip! I did find it a bit of a walk all the way through Downtown Disney to the parks. There was also the option of taking the Monorail into Tomorrowland from about halfway through DTD, but there was usually a wait and we were usually in a hurry! Also, I believe Disney has announced closure of the pools except for the slide at DLH for the Spring, so that might be a bummer. They will allow you to use the pools at GCH and that might be fun, but make for an extra crowded, less than relaxing environment!
DLH also has pretty good restaurants including the super fun Trader Sams Bar and attached restaurant and Steakhouse 55. The character meal restaurant, Goofy's Kitchen, is also going through a refurbishment and is relocated to the Paradise Pier Hotel for a bit.
For off site hotels, we have enjoyed the Fairfield Inn which was almost as comfortable as the DLH, minus the ambiance. There are several affordable restaurants in route to the park entrance, and many many hotel options on Harbor Blvd. I liked to go on Google maps and check out the view, then search for rates for interesting properties online. AAA will save you a few bucks usually.