We're planning our first trip too. It's a popular spring break week and our Anaheim portion of the trip is just three nights / two and a half days.
I think it's a really personal decision. And I'm making a very similar personal decision about the same kind of thing, except I'm looking at a different Disney property and the Fairfield.
I currently have reservations that I can cancel at the Fairfield Inn and at the Grand Californian and although I've flip flopped back and forth a few times, I'm thinking that I'll go for the Fairfield Inn. For our stay the Fairfield Inn would cost us about $600 and the Grand Californian is more than twice as expensive at around $1400, $800 more.
I want close, clean/comfortable, and relatively updated, and the Fairfield hits all those criteria. I also, based on what we want to hit at the parks, don't need that extra early entry hour. The kids I'm traveling with are 18 and 22.
My more whimsical side thought I might like a bit of a Wow factor and I know my kids would love it (It's my decision, though, since they aren't footing the bill), so I booked the other property too until I could decide for sure. And there was a period of time when I thought I wanted to stay at the Grand Californian for sure. This week long trip is our main vacation for the year, and so it seem very reasonable to spurge and given how few days we are staying, the Grand Californian would be in budget.
When it comes right down to it though and I gave this some thought again, I think I'm more of a Fairfield Inn kind of person, and would be happier all around staying there. I'm value conscious. Although the Grand Californian fits in my budget, on top of the high priced hotel rooms, I'd be paying more for food etc. And truth be told, at some beautiful high end hotels I've stayed at in the past, I really hated paying all the extra charges for internet, high food costs, etc. It just bugged me and I felt nickeled and dimed or should I say twenty "dollared" and thirty "dollared"
For DS who is a picky eater, the McDonalds, Pizza Hut, and Mimi's café right by the Fairfield are a big plus too.
Paradise Pier is a little less expensive than the Grand Californian, but all in all it's a higher class hotel, and I think the decision you are looking at is very similar to what I'm doing.
So bottom line is I'd pick the Fairfield, but can totally understand and appreciate someone making the other choice. It's something I almost did too. And I still just in case I change my mind again I still have two reservations. lol