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I'd take the van any day - but then we love caravanning in France and Spain. Campsites are very different to British ones, and you can find some of a very high standard, sometimes with the facilities of a four or five star hotel! Campers and caravanners are very friendly people, and you can do a lot of socialising too.
Cost is important for us, so we go outside the school holidays, book the shortest ferry crossing (Cost £58.00 return this year), and take as many non-toll roads as we can to get us to our destination. We also use Camping Cheques, or an ACSI card, or Touring Cheques to pay for our campsite nights (between 11 and 15 euros depending on which you use). It's perfectly possible to have a fantastic three week holiday on a budget. Whether this compares with the cost of your villa, I've no idea - we've never booked a villa. We've also had some cheap flights to Gerona, so if you fly you can go for next to nothing, but if you're taking your car then it will cost very little more to take the van!
We've been several times with our van, just for a couple of weeks, to Spain - usually the Costa Brava or Costa Dorada, and we make our journey part of the holiday, so taking two overnight stops on the way down and back, and then ten/eleven days on site. We've found some lovely campsites, en-route, and some of these are now firm favourites that we go back to for much longer stays.
As far as damp is concerned, our van is ten years old and recently we bought a waterproof cover for it which should stop any major water ingress and damp whilst it is stored. Obviously the hot sun will eventually have an effect on the seals, but if you are competent at DIY then you should be able to keep on top of this. Where damp becomes a problem is if it is unsuspected and no-one does anything to prevent it.
You're asking your question on a caravanning forum - so any replies are likely to be positive in terms of taking the caravan, I would have thought.
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