I second the family-style and buffet restaurants. The dining plan choices for children are more limited than the adult
DDP choices--more on the same order as the CS restaurants, in my opinion.
If your kids are good eaters (my DD3 likes veggies, fruit, steak, chicken over the fast-food style menus), the family-style restaurants give them the same food as the adults. Plus, your 2 year old would be free at those restaurants.
The 1 TS, family-style restaurants that we enjoyed while my DD was free include:
--Liberty Tree Tavern for dinner (character meal)
--Ohana for dinner
--Princess Storybook Dining for breakfast (character meal)
Buffets:
--1900 Fan Fare for breakfast and dinner (both character meals) -- the dinner buffet also includes a lot of favorites for kids
--Hollywood and Vine (character meal)
When we went to TS restaurants with menu choices like at 50's Prime Time, we got enough food that I could share my meal with my 2 year old.
When we ate CS, I just bought her a meal off-plan. It was cheaper to eat this way when she was under 3 than to pay for a DDP for her. When she turned 3, we switched to the plan for her.