It depends on your budget. My oldest child was 5 the first time we went. We stayed at Pop, but I don't think she cared where we stayed--she was just so happy to be there.
On our second trip (with our youngest along with us), we stayed at the Art of Animation in a Little Mermaid room. Although I won't stay there again due to the cost, I was glad we did. Oldest child was in awe over the room and the grounds at AoA.
At your kids' ages, if you can afford a monorail resort, that would be optimal for YOU. You will have an easier time with a stroller, and your kids will likely be happy just to be there.
With kids, any place that lets them get a good night's sleep at night and have the Disney magic by day, you can't go wrong.