We usually do dinner at Margaritaville, which often includes family friendly entertainment such as stilt walkers, ballon animals etc. We will usually stick aroudn for the bands first set, then walk around CW and do a little shopping, watch a movie etc. I've found that as long as you stay along water front, the atsmophere is pretty kid friendly.
As already mentioned, the resorts are a good option too. The Islands Diningroom at RPR has family friendly activites every night. A couple of nights there are character meals. Another night a magician, and on another face painting, a kids buffet etc.