We enjoyed Paradise Pier quite a bit when we visited DL last summer and we're considering another California trip this year but things are a little tighter so I proposed the HoJo to my wife. Living in NJ, we've been to WDW far more often than DL and she's really a "Deluxe" hotel kinda gal. In fact, the Contemporary didn't meet her standards (dirty corridor and room, tacky design, hopefully the remodel well help). The Polynesian and the Grand Floridian are more her speed.
Anyway, how does the HoJo compare to the PP? The most important factor is probably cleanliness and the condition of the room, linens, and so forth. How do the mattresses compare? How about noise? I see that the back of the HoJo is next to the 5. (We did here a quite a few sirens in the night last year in our theme-park-view room at the Paradise Pier, though. We assumed there was a fire house or police station nearby.) Decor isn't too big of a deal so long as it's not bizarre.
Convenience is another important factor. I tried to estimate the walking distance from each hotel to the center of the esplanade using http://www.gmap-pedometer.com/. I think I did reasonably well for the HoJo, though I've never walked that and didn't know quite how to get from South Harbor into the esplanade. ( http://www.gmap-pedometer.com/?r=182835 ) I don't think I did as well at all for the Paradise Pier. Last summer, we'd cut through the Grand Californian but I don't remember it very well and can't identify the areas of the building well enough from the satellite view to chart a good course, I think. ( http://www.gmap-pedometer.com/?r=182846 ) I got about 0.56 miles for the HoJo and 0.48 for the Paradise Pier. If there are any DL experts that have better routes, I'd be much obliged.
The price difference is about $100/night (for a premium park view room at the hojo vs. a standard view at the PP) so it's a pretty significant difference. One thing I know we would miss is the "unlimited" fastpasses with a AAA package at the Paradise Pier. (Which might even tempt me to do 2 nights with 5-day passes at the PP and 4 nights at the HoJo. But that's $200 for the privelege....)