First choice, I would absolutely stay at the Grand Californian. It's breathtaking and overflowing with magic.

It really feels like you're in a different world, much like you feel while at WDW.
Second choice, Disneyland Hotel. It doesn't fall far behind the GC for me. After all, it's the original and how can you get much more magical than that?
Last choice would be Paradise Pier. It may just be me, but I don't really feel like paying to stay on Disney property unless I can stay at DH or GC...to me, PP just doesn't quite have "it"...although I've never actually stayed there, so I can't say for sure.
There are just several non-Disney properties that seem much more worth the money to me, such as Candy Cane Inn. For about $90 a night they have beautiful rooms, continental breakfast, pool & spa, close location...it feels like I'm getting a little more for my money and still saving some $$ versus staying at PP. Desert Inn & Suites, which is right next to the Candy Cane Inn, also has several suites with views of DCA. It's almost as good as staying at a Disney hotel, and for the same amount of money you get a lot more space for your family.