Howdy Jenny!
There is nothing more magical than Walt Disney World with two toddlers. How fun it is to see the theme parks through their eyes!!
Truly, any of the Disney Vacation Club Resorts would be perfect for you! Since becoming a mom over 6 years ago, I try to book only 1-bedroom villas (or larger) so that I will have the full kitchen, washer and dryer (and additional full bathroom in many of the villas).
Unless you drive your own vehicle, you will most likely take a bus to the water parks so you will be fine regardless of your selection.
Based on your questions, I would HIGHLY suggest that you look at booking a villa at
Disney's Beach Club Resort. You are within walking distance of Epcot and a short boat ride to and from Disney's Hollywood Studios. Plus - it has what my little ones consider the best pool on Walt Disney World property. Stormalong Bay is a 3 acre water wonderland that offers something for the whole family. Our favorite part is the sand bottom pool. It's shallow and has a section in the middle where little ones (and moms and dads) can build sand castles and create masterpieces!
There is a 230-foot-long waterslide or you can float down the lazy river on a rented inner tube. There is something for everyone!
We also make time to enjoy a character breakfast at Cape May Café when we are staying at Beach Club. It's a yummy breakfast and what could be more fun than eating a Mickey waffle while being visited by Minnie, Donald and Goofy?
I'm so excited for you to visit some of the other Disney Vacation Club Resorts. I know you will find hidden treasures at each. Please let me know if you have any further questions and have a magical day!