We stayed at BC in 2010 in the BC villas on rented points .The studio rooms in the villas could definitely use an upgrade. My daughter and husband did not like it at all. I was ok with it because we had rented the room for so little money - about the price of a value resort at the time. I have asthma and experienced no problems with mold. We frequently used the walkway around BC to Epcot and many rooms that we walked past in BC Resort (not the villas)had curtains open and we could see in them. The rooms looked really nice and clean to me- white, pretty, and very peaceful. Some people like modern, streamlined hotel rooms but Disney doesn't have hotel rooms. They have resort rooms and I loved the atmosphere of BC. You felt like you had your on little beach cottage-not luxurious but comfortable and homey (home away from home). The rest of my family prefers AKL over BC for atmosphere and room decor. In my opinion, the negative of BC is the bus route to MK and AK. When we were there in NOV 2010, the bus picked us up at BC and made rounds to YC, Dolphin, Swan, and BWI before contuing to MK and AK. This was time consuming. On the other hand, it was less than a five minute walk to epcot and a short fairy ride to HS. Also, the layout of the poolgrounds is a little confusing and, as with many deluxe resorts, there is not much of a food court - So you just have to plan quick service eating in advance. Cape May Character breakfast is great though.
We didn't experience any bad smells, or musty smells or mold - that would have been a deal breaker for me and I would not want to pay rack price to stay in a studio villa room. But I do believe the BC resort rooms are worth the price they normally get.