We've stayed off property and on property, and I think on property is FAR, FAR better.Here's why:1. You'll be able to use Disney transportation rather than driving and parking to the parks. It seems like a small thing, but with the number of people coming into the parks, just getting to them is a hassle. Depending on where you stay, you'll have the option of Monorails, boats and buses - all of which Disney works hard to make part of the experience. Our 3 y.o. thinks the monorail is a ride!2. Disney Resort guests get "extra magic hours" - most days, one of the four parks either opens early or stays open late. This is huge! You can ride rides that normally have ridiculously long lines, meet and greet characters early and even sometimes see a second fireworks show.3. Because of the ease of getting to and from your resort, it's possible to take your kids back to your hotel mid-day for some downtime. At 5 and 7, your kids might still need this. Plus, factor in the Extra Magic Hours and you'll probably feel like you're not missing out to give up a few hours in the afternoon.4. Your room key is a "Key to the World" - it holds your tickets and, for adults, acts as a charge card virtually every where on Disney property. If you lose it, Disney Guest Services can shut it off immediately. If you lose your paper tickets, and they were not purchased through Disney, it might not be so easy - or possible at all.5. While Disney food is not inexpensive, it is surprisingly varied and not unhealthy. Though some parks are better than others - Epcot and Animal Kingdom have GREAT food - Magic Kingdom and Hollywood Studios less so - there are decent options everywhere. When we stayed off site, we ate at places like McDonald's and TGIFriday's - the same stuff we can find at home, and not much cheaper.6. The Disney Resorts are an experience in themselves. We usually take a day off to just hang out at our swimming pool and relax, and then go to Downtown Disney that night. Off-site is a mixed bag - even though they usually have pools and playgrounds, they're rarely as nice.Now as for the Disney Dining Option, I would *not* take it, and here's why: the Dining Package provides for one sit down meal, one quick service meal and one snack per day. The sit down meals can be truly fabulous, but you almost always have to make reservations to use them. At peak times, you can't necessarily get into your first choice restaurant unless you plan FAR in advance. And reservations with small kids in tow? It's not the easiest thing. Better to eat at one of the many, plentiful counter service restaurants when your kids are hungry.We just returned from our second trip staying on property, but our first without the dining plan. We spent about the same on food.Staying at Disney is a little more expensive, but I think they really do give you good value for what you're paying.Enjoy!