Wow David! That sound really bad....
It didn't sound ideal, but I suspect time may have healed this particular wound...Is there any reason that a 4 year old thread has suddenly returned to life? I have no experience of the rooms in question, but it's conceivable that the entire situation has changed completely. So unless anyone has a new experience to add, it seems a little pointless to discuss it.
so: yes you are right. what you get at disney is not service or quality, it´s just a short walk-way to the parks... 
What is it they say; location, location, location? Prices do not only depend on the level of service of the hotel. You'd pay more for a Travelodge (for example) in central London than you would for a 3 or 4 star hotel somewhere else. That's not exactly a surprise.
This is not to say that I don't think that the "top end" Disney hotels don't over-charge, especially for the suites, because I think that they do. If you don't get the service that they say they will provide, then you have grounds for complaint. But if you don't think the described service is worth the money that they are asking, then the solution is not to pay it: not pay it and then object.
As far as mid-range goes then I think that the prices are actually very reasonable, especially if you take advantage of the special offers. We are going in October to the Newport Bay and when you deduct the current price of park entrance for our total stay, then it works out at about 80 euros per night for the room and 4 x breakfast for 3 people. If I'd been a bit quicker off the mark, I could have got the Hotel New York for about the same price. You can't really argue with that!