Yes, the Disneyland Hotel is more expensive than most local area hotels but to me, it's worth it. The pictures in the lobbies, the atmosphere, its proximity to Downtown Disney, its pools, its history, its staff, its closeness (used to be closer) to the Monorail, its restaurants and just the overall experience of staying at the official Hotel of the Magic Kingdom make it worthwhile. My kids love the Neverland Pool (ages 6, 8 and almost 3). You also have your own line while waiting for the Monorail in Tomorrowland. If you get tired from all the walking in Disneyland, hop on the Monorail and go relax by the pool. At least once in your life, stay at the Disneyland Hotel.
www.magicalhotel.com