It all depends on what you are looking for- we've stayed on and offsite and they all have their pluses and minuses. For instance- the Best Western Park Place Inn and the Camelot motels are both much closer to the entrance than any of the onsite hotels. (The Camelot is right next to McDonalds, which thrilled my kid more than the fact we were in DL). They're reasonably priced and relatively clean, but they also have very small parking lots and no room service, etc. I like the Sheraton Anaheim because it's got it's own shuttle system and as a hotel it has the usual amenities: room service, a decent restaurant and lounge, a great deli and gift shop, an arcade, a heated pool, laundry area near the pool, etc. The shuttle is very efficient and it only takes a couple of minutes to and from the Resort. Best of all, it costs less than half of what you would pay for a basic room at the DLH, and considerably less than the Grand. If you stay at the Sheraton, be sure to sign up for their Starwood program- it's free and you earn upgrades, get morning papers, etc.
I have heard great things about the Candy Cane, but I just can't get past the silly name to actually stay there.
