Hi Tarah,
I felt the same confusion the first time I booked the All-Star Movies resort; and when it was all said and done, we had a wonderful time at the resort. My sons were younger, so we didn't need as much extra "people" space, and they absolutely loved the movie icons throughout the resort. I also enjoyed not feeling the pressure of being concerned over going over our budget; the peace of mind I felt was worth its weight in gold! And quite simply, we were in WDW, so i couldn't be more thrilled!
Since it is a value resort, the rooms and beds are smaller as well as fewer amenities, but still filled with Disney magic and the benefits of staying on site. And I really believe that if you are using the resort as just a place to sleep, it is well worth it.
I recently visited Pop Century, and I have to admit I thought of it for you immediately as I read your question with the diverse age range of your party. It is filled with many icons and objects from the last 5 decades. I think it would be fun for everyone to experience a little nostalgia!
If it is possible, you may want to consider spending a bit more for a preferred room so everyone will be closer to the main building and bus stop. That can make a big difference at the end of the day to not have to walk to the farthest building.
Have a magical trip!
So with all that said, my thoughts are that the value resorts are certainly worthwhile! I'd much rather stay on-site at a value resort to keep the Disney Magic alive the entire trip rather than staying off-site to save money or have a few more amenities/space.