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I think the time needed to do the Disney resorts may depend on the age and gender of the children. The first time we went, we did the 4 parks in 4 days. We literally spent all day there and still didn't do everything, eventhough we were there for opening.
My girls were young though and it was less about the rides and more about the magic and meeting the characters. In fact they were too small to go on the rollercoaster type rides. We spent a whole day at Epcot and half of that was queuing to meet the princesses in each of the "countries" as my girls are Disney princess mad.
Universal definitely has better rides, so I guess it all depends on what your kids enjoy.
In terms of accomodation, can your other half not get great deals at the Sheraton in Orlando too? We stayed at the one in Downtown Disney, which meant you got free shuttle buses to the parks. We ate in Downtown Disney in the evenings as there was a decent choice of places to suit different prices.
That was how we did it anyway, then had a week at the beach for the second week. So many different ways of doing Florida, good luck with whatever you decide, the kids will love it.
