We've stayed at the Dillon several times on our many visits to Wengen. Perhaps our favorite feature - besides the awesome view - is being able to see the trains traveling to/from Lauterbrunnen. If you have younger children, they might love that feature as much as my son does (even now at 13 years old).
The apartment is quite large with 2 bedrooms on each level and 3 full baths. Additionally, there is a washer/dryer on each level as well a kitchen & living room on both. With a family of 5, it is wonderful to spread out. The living areas have incredible views with large windows. If it is warm, go outside and enjoy the upper or lower terrace (decks as we would say in the states).
The walk to the village from the Dillon takes a 10-12 minutes. As with most apartments, you will have to traverse a hill to/from the chalet. But, the walk to/from is scenic. We like to take the main street (High Street as they call it) then turn left on the path below the church. I can't count the number of photos we have along this path - of the church - of the view - hmmm. Never get tired of it as we never tire of visiting Wengen (every year for the last 10).