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I just stayed there last Tuesday. I'm a Cast Member at the resort and I went with my partner because we wanted a little mini vacation. I was really surprsied at the hotel. The Cast Members were great, the rooms were large, and the pool was amazing. We got to the hotel around 8am because we wanted to enjoy magic hours, and the CM at the front desk was able to get us a room that early. We were thrilled to have the room at such an early time. I didn't have an issue with it, but some people may not enjoy the walk from the parks to the hotel. Its easier to cut through the grand, but I didn't mind the walk as I know after eating that pizza port I needed to work something off. Its an awsome hotel, and for the rate you can't beat it. The only other on property hotel I have stayed at is the Disneyland Hotel, and although I love the Disneyland Hotel...I felt that the Paradise seemed more upgraded and fun, but I still love the DLH.
We had friends stay their last spring. Their overall impression was that it was a little farther walk, but a little better place to stay than the DH. The rooms were nice, not too stinky, and the service was excellent. They really enjoyed their stay there, and it was worth the price.
We stayed in September, and it was fine. We did NOT figure out the best way to the parks (out front entrance, cross street, through GCH, come out into DTD next to Libby Lu and you're almost at bag check) and 4 nights with a 3 year old and all that walking was highly obnoxious.
To be honest, we spent 2 more nights at hojo, and not only was the walk shorter (than the not-suggested follow-the-signs, all the way through DTD past DLH route) but I felt it was more of a value. Not as nice, but nowhere near as expensive = better value.
But getting MM each day it was offered during our stay was very nice!
I've always enjoyed PPH. It's newer than the DLH and the rooms are larger. You can still use the Neverland pool at the DLH if you wish. The shortcut through the Grand Californian is rarely a problem and if I get too tired, I'll sit a while in the lobby of the GC and listen to the piano player for a few minutes. If there are fireworks you can go up to the third floor, head out as for the pool and they pipe the music and narration up there so that you can watch the fireworks without the crowds, which is nice if you have a liitle one.
We got back this afternoon and we had a great time. Our room was larger than usual, it had 2 windows instead of one. The view of DCA was wonderful, we were on the 11th floor. Our check in was fast, easy and friendly. We needed to rent a wheelchair and the guy checking us in went to the Bell Captain and got it for us. When I needed to rent on at DLH, I was just pointed in the general direction and told where to go get it. The walk from DLH almost fells longer to me than the walk from PP through the GCH and into the park. The price was great with the AP5 rate too.