Hey Figment, fellow Jersey/Disney fanatic here. Wanted to chime in on your original post, i can only speak on my rationale and decision making on my upcoming trip, it does not mean i'm right and anyone else is wrong, as they say..... to each his own.........
As you're already aware (but others not familiar with this area may not be) we have many options for vacation spots, Jersey Shore, Poconos, etc. My wife and I are first time parents, baby was born July 2007. Obviously we didn't go on vacation last summer and have been looking forward anxiously to this vacation season. Like everyone else, the big decision is "Where do we go?" We priced out trips to the shore, Ocean City MD, North Carolina, etc. And let me tell you this, I literally booked my Disney vacation for 1 week for the same price it would have been for me to book a shore house for 1 week. And with the shore house, that's all you get, the house. You still need entertainment, food, souveneirs, etc. With Disney the price i got was for a stay at ASMU, dining, park hoppers, transporation, etc. So when it came to $, it made complete sense.
Now many of the pessimists will ask me all of the time "Why take her to Disney, she won't remember it" Oh ok, so if i take my 1 year old to the beach she'll remember it? I feel bad your cousin had a poor time with their 1 year old, i'm sure too that it has everything to do with each individual child and family in regards to how they will react.
My wife and I have done several Disney trips together in the past and had the times of our lives, and as another poster said, why change that now because there is a baby. We're going into the trip WITHOUT our "Park Commando" style as we've done in the past, open to close, hit all attractions at all costs, etc. We will let our baby dictate our trip. We will also for the first time go back to the room for the mid day nap, lunch, swim, whatever we feel like. Returning to the parks for a nice (free) sit down meal, parades, and fireworks. If she's cranky, we'll do what is needed to correct it, if she's loving it, even better. We go with an open mind knowing we will not complete everything.... the point for us will to be there as a family for the first time, creat memories, take a lot of pictures, and know that we are blessed to be able to take our daughter there in the first place....the way this country is, many can not go anywhere. Yes, down the road when another child comes along, we'll wait until both are older and take another trip.
Finally, i've ALWAYS made another argument to play devil's advocate that taking a 1 year old may be better than a 5 or 6 year old. I will not have to deal with the "daddy buy me this, daddy buy me that" after going through every single store in Disney, and exiting the attractions. I will not have to deal with the meltdowns when i need to tell her no. And of course, right now she's free in regards to park tickets/resort/and food.
Again, everything i brought up above, there is always an exception and someone will have a rebuttle for, i only speak for our situation.