A few random thoughts:
- There shouldn't be any issue in staying at the bulk of LAX-area properties, especially the high rise hotels (fun fact: the Hilton LAX is a carbon copy of the Hilton Anaheim). These hotels are typically the most inexpensive options in the area, although note that the brand new NFL stadium & entertainment district is opening up later this year, literally right around the corner, which may cause rates to swell. The area is pretty boring and traffic isn't much of an issue. It's being gentrified (less than a decade ago, you could've purchased a nearby home for less than $100K, and today it'd be worth five to seven times that), but expect to see a lot of aging industrial buildings and plenty of panhandlers. Yes, staying near Hollywood would be nicer but it will also negate the concept of "inexpensive vacation."
- Traffic can be very slow going. This is especially true in/around Los Angeles, where there's huge population density but very little infrastructure to accommodate it. Even if traffic isn't heavy, there's more & longer traffic lights than you may be use to, equating into a slow commute. Also note that people drive very, very aggressively... as in you get the green arrow, start to make your left hand turn... and the persons turning right keep coming, hoking at you like you're in the wrong. Traffic is at its worst in & around major business and tourist areas... lots of backups in/out of Hollywood even late into the morning. That said... I think L.A.-area traffic is often exaggerated on here, but it's definitely something you got to get use to. The good news is... if you plan your trip, you can minimize time spent in traffic.
- Don't forget to add parking and gas into your budget. Parking can be very expensive, and gas ranges from $3-$5 per gallon, depending on what part of the region you're in. Here in South Orange County, it's around $3.60. By
Disneyland, closer to $3. By West Hollywood, $4-$5 (or more), depending on the station and street corner. Best advice: make sure you always have a full tank when you leave the Disneyland area.
- I'm sure people are annoyed with me saying this, but: take advantage of public transportation. On weekends, you can get unlimited rides on the Metrolink for $10 per adult. Kids ride for free until they reach high school (weird cut off). Parking is free at both the Anaheim and Fullerton stations, one or the other could be closer to you. A valid ticket also gives you free access to the ART, if you prefer to go that route.
o You can ride the Metrolink into Union Station, and take the subway (~$3.50 RT per adult, less per kid; sometimes transfers are included in your Metrolink fare) to Hollywood. Perform your own walking tour of the area.
o You can ride the subway or bus to all of Los Angeles' attractions, whether it's the Disney Concert Hall, Santa Monica Pier or Venice. There's multiple ticket types - per ride, per day, per week, including some that combine multiple transit (LA + Santa Monica, etc.). Ultimately, you'll pay less than you would in gas + parking ... with a lot less frustration -- you'll arrive in the middle of Hollywood, not some seedy lot down the street that you found for $10.
o You can also ride the Metrolink south to Oceanside. Past San Juan, it runs along the ocean. Oceanside is a very relaxed beachside town, with more reasonable pricing than Newport, Laguna, etc. For a few bucks, you can connect with San Diego's Coaster and go all the way to San Diego. There are lots of places to explore.
- For Orange County beaches, each community has its own free bus/shuttle during the summer months. You can ride them all, and explore each city's offerings.
- Not the cheapest, but still a viable idea - for a nice beach visit, consider Santa Barbara. From Anaheim, Amtrak's Pacific Surfliner (which runs the same line as the other trains) goes nonstop, but the best deals with involve changing trains at Union Station and taking the Coast Starlight. Amtrak is always running various promotions, but a family of four (two kids) could go for RT$100-$125. The train runs along the ocean for the last hour of the trip; it's a long distance train (headed to Seattle) and has a long distance sightseer car. It's also one of the last Amtrak trains with a full dining car, if you wanted to sneak a very quick lunch or have a nice dinner on your return (Amtrak is gradually cutting the dining cars - it's not cheap, but you don't have to leave a full tip unless you want to ... Amtrak salaries = why the food's expensive). Amtrak also has a California Pass that allows unlimited travel for a week... $150 per adult and $75 per junior... kids 12 & under ride free (one per adult). Could be a better option for some.
- To keep dining costs down, I recommend signing up for Mimi's Cafe promotions list. It'll take a couple weeks or so (you'll get some free muffins at first), but you'll receive perpetual BOGO coupons. Mimi's is across the street from Disneyland, and an easy walk. You can watch the monorail go by while you eat - makes for a cheap but good meal. Also, Katella Grill is a little further, but has some incredible old school "Blue Plate" specials. Like break, soup or salad, three strips of london broil, two sides and rice pudding or ice cream for $13. Buy a coupon from Groupon or Resturants.com and get it for even less.
OK, I'm rambling and I'm sure nobody's reading this lol...