Absolutely right! Colonial Williamsburg would love to be able to install a perimeter fence, and charge everyone. That will never happen because the streets are public, and it is right next to the William & Mary campus..
All the residences are owned bu Colonial Williamsburg and occupied by their employees. The higher up you are, the better the house. We enjoy going in December. After the Grand illumination crowds are gone. All the Christmas decorations are there, but not the crowds. It's a very pleasant little place to walk around, and there's no charge to do that. You need a "pass" to go into the Governors Palace, Capital, Art Gallery etc., or anything with a Union Jack flag in front. Duke Of Glouster St., (DoG Street) has a shoe maker shop, about mid street.. Next to that there's an alley, with a small cottage like residence. If you're there for Christmas, the lady always has some very imaginative decorations.
There should be plenty of hotel deals, many with free breakfast, and parking. Grand Illumination is usually around the 1st Saturday/Sunday of December. Stay away from that mess, and you should be OK.
I-64, E of Richmond is supposed to be going thru a widening project, so I'd use VA-5 to get in/out. VA-5 is a nice drive, never has traffic, but watch out for the deer! There's a VA-5 exit off I-295. I avoid I-64, so not sure how bad it may or may not be? Look for a parking spot of VA-60 (Richmond Rd)., and walk from there. That's free too.