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I've been to IOA (Hogsmeade) 3 times and US (Diagon Alley) twice. If its rides your looking for Hogsmeade has more. Diagon Alley only has Escape from Gringotts. The food and souvineers are really the same in each park. If its the atmosphere your looking for I enjoy Diagon Alley more. You can see...

When we stay off-site we stay at Drury Inn & Suites. They are highly rated on Trip Advisor, which is why we stayed there the first time. They are cheap, close to the parks, family friendly. They have free breakfast and dinner and 3 free alcoholic drinks per adult per night.

I always choose to drive the 10 hours to WDW. Its <$200 in gas or $600-$1K for plane tickets depending on time of travel. If you can spare 2 days for travel then I say drive and save your money for something else in the parks.

I agree with others, its a half-day park. I would go of the morning do the rides and shows and then leave. Come back at night for Fantasmic.

I would say no. Save it for another attraction. If your going on a night when there are 2 Fantasmic shows the second one is always less crowded. I have never had an issue getting into the first or only showing without a FP, showing up 30 mins to 1 hour ahead of time.

Congrats! You're going to love it!