I was at DLP at Easter and although a few of my fav rides were closed we still loved it. Didnt really notice any signs of it looking run down. We stayed at the Newport Bay and it was lovely, in the past we have stayed at the Cheyenne which has a wild west theme and is a great family hotel while still only being a 15 min walk from the park.
Between christmas and New Year all the Christmas decs and theming will still be up and all the parades and shows will have a festive feel! I have never been at Cristmas but am hoping to do so next year.
Personally I would look at the list of ride closures and decide if you would be disappointed to miss that particular ride. Imo a trip to DLP is about much more than the rides, but then I am a little Disney mad