My family stays at the Nick Hotel every year for 2 days before we go to WDW. Let me tell you....we are relieved to leave Nick and go to WDW! Too many kids going wild, too much day glo color, too much Rug Rats!!!!
My kids are older and it might be different for those who have younger kids who have had more exposure to the Nick characters than my kids did.
Comparing WDW to Nick Hotel is like comparing WDW to that fake Disney Chinese Beijing theme park. Nick's prices for food are higher. The room prices are outragous unless you book far in advance (my $184 per night suite that I booked in August 2006 for Aug 2007 is now $330+ per night) compared to someof the nicer WDW Deluxe resorts. Even though the hotel was only a year + old last year it was ill-kempt compared to any WDW hotel. Actually, Nick is not a new hotel, it's a refub of a Holiday Inn (and laid out exactly like the Holiday Inn Sunspree in Orlando). The amenities that Nick offers are nice for a day or two, bu I still don't think they hold a candle to even the Value WDW resorts.
Their character buffet is awful...cost me $100 for 5 people to eat cereal, stale pastries, and greasy eggs/bacon/sausage. The lunch and dinner meals are worse...TV dinner quality spaghetti and chicken strips. They have a food court with Pizza Hut, Subway, and A&W, and I think a salad place, but that's it. We usually eat somewhere in Orlando (usually some of the restaurants at the Crossroads Mall) and will be defintely be skipping the character breakfast this year for one on Disney property.
That said, I wouldn't skip it if you really want to go there, but I think that it's disappointing next to WDW. We only go because my 12 year old still likes it there. This will probably be my last year there (3 in a row).
Thee are a few cute things there like the Dive in movies, the poolside Nick shows, the Nick Studios show, but that's really all there is. The rooms are cute, but if you get one with characters that you hate you'll be miserable..they are literally all over the place in your room. The only character room you can book in advance is SpongeBob and they are in the most unscenic places in the hotel (behind sheds, pool utility houses, etc).
Hope this helped...