This is definitely one for me! We just went in August last year (my 9th time) with my 2 sons 4&6 and my partner. In the past we've gone as a group and stayed in villas as well as on our own (before children came along) in hotels. This time we opted for a viilla on our own as we wanted the pool to ourselves. We've enjoyed the villas as a group and I love the relaxed atmosphere getting back from the parks and going in the pool and chilling out with a cocktail in the hot tub once the kids are in bed - beats a hotel room hands down!
We booked our flights, villa and car hire ourselves as it works out cheaper. We found a great villa off the 192 it cost us £1000 for 2 weeks for a 4 bed villa with own pool n hot tub. Proper 10-15 mins to Disney - but beware some villas on the 27 are quite far away even though they say "just minutes from Disney"!! You can pay twice or 3 times that so you'll have lots of homework to do but my advice is the older villa estates off 192 (on funnie steed road) are cheaper but closer as are usually older in style inside - may look a bit old fashioned. Those on Windsor Hills estate are lovely but much more expensive as newer but you can see Disney fireworks you are closer than some onsite Disney hotels! I use google to see the real locations of villas and do driving directions to find out times to parks before I decide which one to book.
This time we only did Disney as boys a bit younger but next time we go we will do universal too (2017 boys will be 7&9) but that's more for me then!! Bigger thrills at Universal but sufficient at Disney if children don't need huge roller coasters. You can easily fill every day of a 2 week holiday with a theme park (4 Disney plus prob need 2 at MK, 2 universal parks, Seaworld, Busch gardens, waterparks etc - soon adds up!). Like I said this time we only did Disney and had a complete day off in between each one so it was actually a relaxing holiday

. But it wasn't our first time and I knew it wouldn't be our last so I didn't feel the pressure to try to do it all.
I cannot recommend a villa highly enough but obvs depends on budget and what you/children prefer to do. What are your priorities - if you want to stay in the Disney bubble then maybe you will be best off in a Disney hotel but if you're staying offsite any way then in my opinion a villa is the way to go.