On the Property for sure! - gives you access to Early & Late entrance to the parks (we've stayed at 2 of the places below...each one for different reasons and going to a 3rd in Jan). Also, they will send you luggage tickets in advance, so all the luggage you check at the airport will go from your departing airport to your hotel room (w/in 3 hrs of your hotel arrival)(I do suggest you try and carry-on anything you might need the 1st 3 hours though).
If you want to spend $$$ on hotel, stay at the Polynesian - Kid friendly, and transportation to the parks is easy via the Monorail (which makes for easy naps during lunch time). - Monorail goes to Magic Kingdom and Epcot - the Polynesian is also within 1 block of the Transportation Center which has buses that will take you Anywhere (MGM, Animal Kingdom, DownTown Disney, etc).
If you want to go Middle of the road $$ with some convenience I suggest Port Orleans- French Quarter. We haven't stayed there yet, but plan to this Jan. It's very close to Epcot, and Epcot has the Monorail to Magic Kingdom - somewhat convenient.
Also, Middle of the road $$ - Animal Kingdom Lodge - It's just really cool for kids. We haven't stayed there yet, but plan to when Berkley and Beckett are a little older, I do think most kids will find it awesome to wake up and see a Giraffe or some other Safari Animal outside the window! Plus, you're right next to the Animal Kingdom (however, somewhat far from the other parks).
If you want to go low cost on the hotel - one of the All Star Resorts ($89/night) - Very Kid Friendly, great pools, but these are the least convenient. You must take buses to all parks, and usually the bus stops are far away.
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