Even though I live around here. I haven't ventured to the hotels much. But what hotels off Harbor Blvd are the best for families with small children but yet not too far.
We've gone a few times and find the Best Western Stovall's Inn to be great! Its at the corner of Katella and Disneyland Drive. Its about a 10 minute walk to the parks. Everything is clean and updated. Discounts are always available through AAA or Coupon books. We highly recommend...in fact we are staying there in less than a month!!
I like the La Quinta on clementine blvd., its a decent hotel, not too expensive and it is right around the corner from Disneyland (and if one of the rooms is available, they have whirpool bath tubs)