Sorry you've had hassle with your booking! But I wouldn't fret as the Newport Bay is lovely!!
We stayed at that hotel a couple of years ago and it was fairly recent after its refurb. It's lovely, the decor is amazing, the atmosphere is great and probably the nicest of the Disney hotels I have stayed at! I haven't stayed at all of them mind you but of the ones I have it is top of the list.
The walk from the Newport Bay to the parks is good as well! It looks like a reasonable walk on the map but it isn't that bad actually. The scenery is lovely walking down beside the lake so made it far more enjoyable than getting the bus.
I know it wasn't your first choice of hotel but you'll still enjoy it! It is a lovely hotel and we had a great experience there!