Depending on the week you are going, my recommendations will vary. If you are travelling anytime in March, Daytona will be crowded with college students, Bike Week participants, and College BeachFest (formerly Black College Reunion) participants. During those times, the most family-friendly parts of Daytona are to the South end. These weeks, the streets are bumper-to-bumper, and so is the beach. I would recommend Perry's Ocean Edge, which is very family friendly.
If you are going in April, the crowds will be smaller and the vacationers more families than college-aged people. Then, you may want to be closer to the BoardWalk, at a place like the Wyndham Ocean Walk.
Having grown up in the summers in Daytona, it has changed a lot. When its not as crowded, it is more like it used to be. The crowds are hard on a family with small children.