Through the 80's and 90's when my family lived in SoCal; we'd go to the park at least once each month.
Twice each year (October for birthdays and May for Mother's Day) we stayed at the
Disneyland Hotel and the rest of the time off property--but usually at the Anaheim Hilton next door. Actually, once on a spur of the moment trip, we stayed at a Best Western--The Cosmic Age--but that's another post all together..
Posters are correct; you can find a nice hotel off property, or you can stay at one of the three on property resorts. It depends on your budget and your view of the "worth" of staying onsite at the Disneyland Resort.
(As a side note: One of the reasons there are no offsite hotels at WDW that are as close as those at Disneyland is because Walt was annoyed at all the crowding-in of the hotels and motels in Anaheim. So, you don't want crowding--you buy 26,000 acres (over 40 square miles) in the relative middle of nowhere and start building near the center... "Problem" solved.)
Michael.