You can get accomodation a lot cheaper than that though villas tend to rund more on the pricey side. We've done Villa and resort with DD, at just two in the villa and then over xmas this year at a resort, so 2.9 years.
The villa was great for a younger one, the resort was a hit at nearly three.
We stayed at Canggu the first time, Echo Beach in the villa and paid $200 pn and put a bit more toward a driver who had an airconditoned people mover with car seat. Worth a look. You can get most foods at one of many foodmarts, nappies too. If you stick to bottled water for drinking at teeth and you aren't still bottle feeding a small one then you ought not need miltons but you can never be too careful. Never had an issue with resturant food either - plenty of chippies, plain noodles and the like! They cater pretty well to western kids palates I have found.
Another option is to look at trip adviser and google and look up "All Inclusive" resorts (we did this over xmas) - there are only about five I think but accomodation and food/drinks/entertainment/kids club is included in the total cost - it makes it very easy with young children.