Disneyland Hotel is lovely
We stayed there 2 y ago, and I would stay there again if I could afford it! Yes it is expensive, but all Disneyland is expensive, but you do get a better "experience" I think.
Our room was great-we had 2 queen sized beds, 1 for dd, 1 for us. A huge tv. A lovely bathroom with Disney touches, and free Disney toiletries (though I was a tad disappointed that the shower cap didn't have Mickey Mouse on it!). Bathrobes supplied, chocolate on your pillow at bedtime...
The hotel has a kids club if parents want some time on their own. The swimming pool is a little disappointing- rather small, and no shallow end, so you'd have to watch your 5 yr old like a hawk.
There are characters at Breakfast every morning. Of course there is a photographer, but they don't mind if you take your own photos. Aside from breakfast every time you have a meal in the hotel there is a little gift for the child.
The hotel is literally at the entrance to the park, so you can get in really easily, and everyone is really nice to you (they have to be!).
I would go back again (but I'm a sucker for that sort of thing!).