Yeah, having done WDW twice now, it's a lot more family-friendly when you take advantage of the stuff they have to offer (airport shuttles--complimentary!) and so on.
I would agree with Scoobs that doing the dining plan is a better way to go overall, in that it gives you a little more choice than a more "budgeted" plan. IIRC, some of the plans are good with places at Downtown Disney, which if you're a family of four even at someplace like Rainforest Cafe can run a couple hundred, easy. I think the biggest reason we did go with it this time around is because it was in fact a lot of money up front, and had we spent any time off-property (we didn't) that would have been wasted money for that day(s).
We stayed at AKL, and the animals were good and fun to watch, the pool was fine for the kids, and welcome after a hot day in the parks. Boma was the buffet, which was alright, but some of the stuff the kids didn't care for as some of the stuff was a little exotic for their tastes. We were there for 10 days but only did tickets for 6 with the Water Park and More option--IMO, you do NOT, repeat NOT, need the Park Hopper. Even then, and spending a day at each of the water parks (Typhoon Lagoon was the more family friendly) we were totally wiped out by the end of the trip. I would typically be the pack mule and bring about 8-10 bottles of water, camera, sunscreen, sunglasses, etc. You can make arrangements to rent a car at most of the resorts, but honestly, there isn't a whole lot of need. We did ONE night's dinner off-property, and the taxi to/from only ran us $30. There are also plenty of markets, etc., where you could stock up on consumables like water, sunscreen, etc., that are WAY expensive at the resorts (think $15 for a case of bottled water--we went through at least 2-3. Sunscreen that I got 2 for $11 at WalMart go for $13-15 at the resorts. And so it goes.)
Magic Kingdom will take (typically) two days. EPCOT will take one or two, depending if you want to hit the back part (not many rides, mostly food, exhibits, etc.) (However, I was at EPCOT during the Food and Wine Festival in November and it was pretty impressive there.) Animal Kingdom and Hollywood Studios can each be covered in a day.
Yeah, before we went we considered going somewhere off-property for a day...BWAAAAHAHAHAHAHA!!! Silly fools!