My husband and I have stayed at WDW more than 6 times--1 time off-site and we would never do that again!!!--we've stayed at the moderate resorts and at the value resorts. We will be going once again in February 2004 and have gotten reseverations for the PC--we are thrilled! Everything will be NEW!!! As far as the room size, they are smaller but how much time do YOU stay in your room?? Eight hours for sleeping and while you're sleeping you don't care about the size of your room. We have been treated acceptionally at the Value Resorts, even much better than at our last moderate resort stay (that's another story)!!! To be a few feet closer to the main entrance of the parks (because of transportation drop-offs) isn't a big deal for us--heck, who doesn't need the exercise???
I would definitely stick with the PC--if you've got problems with the service make sure you complain to Disney in writting and Disney will do PLENTY to make up for it...
Hope this helps!