When the dses were little, we did self-catering holidays because having our own place meant we didn't have to worry about them disturbing other people - they weren't out-of-control noisy, but they were normal small boy noisy, and trying to manage that in a hotel room would have been a nightmare.
Self catering also meant we could feed them when it suited us, and we could give them the food we wanted them to have, rather than having to wait until the prescribed meal times at a hotel.
Self catering also meant we had more space, so we could take toys for the boys, which made things easier - plus we also always made sure we had a washer and dryer, so we didn't have to take as many clothes with us.
We did have the occasional night in a hotel with them, and it was so much harder and more stressful - sharing one room with them meant I didn't get a decent night's sleep, and also meant that no-one got a lie in, in the mornings (dh and I used to take turns at having the lie-in). It was nice having someone else do the cooking, but for me, that benefit was far outweighed by the downsides of not being able to eat when we wanted to (when it suited the boys' routine) but having to wait until the restaurant was open, and then having to get the boys to sit and wait quietly, and behave themselves, whilst waiting for the food to arrive.
So TheRealAmandaClarke - you can tell your dh that everyone doesn't agree with him!