Staying on Disney property has benefits (like early park access) but comes at a cost.
I've been a bunch of times (5-6?) as recently as last Jan.
I find the best option to be staying at the Holiday Inn Orange Lake or Sheraton Sultana/Vistana properties. They're condos, so there's plenty of room (i.e. 2 or more bedrooms) and I find that I can get them through Expedia/Travelocity for motel money. close to Disney, etc..., very nice properties with excellent facilities (resort-style pools, lazy river at Orange Lake, etc...). You'll need to rent a car (assuming you fly) but cars are cheap in Orlando. And definitely get a park-hopper pass - the flexibility is needed.
This is the Pub. Leave common sense at the door.