We've stayed at the Embassy Suites twice for Disneyland in the past two years with our kids, for the very reason of needing the extra space. This Feb we were upgraded to a conference suite (as Diamonds) and it was quite nice. Also, we had very good luck with using the Anaheim Resort Transit to get to Disneyland - $24 total for 3 days of passes for the 4 of us as opposed to parking at Disney for $13/day and STILL needing to take the tram from the parking lot to the front door.
I can't say it's better than the Homewood, but again, we've really enjoyed our stays at the Embassy Suites (Anaheim South).
Dave