My 2 cents...
Having been to Disney a LOT, starting in 1975, and with my children starting in 1990, at least once a year when they were little, and more times after that I can give you my best opinions.
Go in October is at ALL possible.
Starwood... Try for the Swan (EPCOT hotels) then the Dolphin. The location is great!! I mean really great!!
They are on-site. You can walk to the "back" entrance at EPCOT, where the countries are. Take the boat to MGM, and buses to Magic Kingdom.
Start you day when the parks open, seriously. Do not do stroll in at 10 am.
You will get more stuff done before 11, then most people will get done in a whole day.
We go early, leave mid-day for swim and relaxation and go to an EPCOT country for dinner (fireworks every night at 9)
They ask kids their favorite part of Disney. Most if not all say Hotel pool.
Swimming and breaks are that important.
Splitting up is possible if on-site. Your party is only as strong as it's weakest link!
Ask if you have more questions.