The central location of the Yosemite Lodge (now called the Yosemite Valley Lodge) means that you won't need a car for most outings. Instead, you'll use the valley's free shuttle service to get around, or rent bikes at the lodge. You'll also be able to take advantage of the lodge's swimming pool (leave your snacks in the room though - the chipmunks are so aggressive that they ate through my backpack while I watched my kids at the pool.
Our family of five, the traditional bunk room was "cozy" but worked very well, and provided a nice respite after a week of camping.