empedocles,

As a mother of three kids and a veteran of 15 plus trips to Disney World, my initial reaction is to suggest staying on Disney property, especially since you are looking at Thanksgiving, when there will be crowds (not that you can ever really escape crowds at Disney!).

The Disney resort hotels range anywhere in price, at that time of year, from just under $100 to $400+, so you can probably find the type of accomodations you are looking for within Disney itself.

If this is your first trip to Disney, or you have young children and plan to spend most of your time at the Magic Kingdom, staying on site is a must. (If the kids are very young, a monorail hotel, if within your price range, is ideal). Booking now would not be too early. Staying on site also allows you to take advantage of perks like special early morning park entry and eliminates the traffic tie ups that so often occur in the areas just outside Disney, especially in Kissimmee on Route 192, where many of the outer hotels are located.

If you do decide to stay off site, a rental car would be your best way to avoid lost time waiting for hotel shuttles (you'll do enough waiting once inside the parks). We have found that there are some great hotels in the Lake Buena Vista area, specifically on Route 535, which are just minutes from the Disney gates, and the traffic there is somewhat less than that in the Kissimmee hotel area.

As far as the points go, I maximize my ability to earn them as much as anyone, but on this trip it may be more logical to go for convenience and time rather than points. A Disney vacation is usually not relaxing, especially with kids, so proximity to the parks may be worth more in the long run than the points you might otherwise accrue.

If you need further help with any other questions, or are interested in a specific hotel, let me know.......I've stayed in most of them!