I think the whole "DCA is a waste of space" is being largely disputed. I know I thought nothing could be as good as the original, and while DCA isn't as good as DLR, it has a completely different charm to it. Like a PP noted, I also spend about 40% of my time in DCA.
Bugs Land is completely small-child friendly, except, maybe for "It's Tough to be a Bug." I could see some kids getting freaked out by a 3D show with bugs flying at you, and when those termites leave, I'll admit I haven't ever screamed so loud! LOL The rides in BL are just fun and cute, and not at all scary.
There's Cars Land, which may or may not be a draw for your family. (For ours, it's a HUGE draw now!)
The Ariel ride can be enjoyed by young and old.
I really think DCA has a lot to offer. Yes, it might be described as "second best," but I think it's hard to truly, accurately compare the two. DL has the nostalgia, DCA has the movies that DD loves (ie, Toy Story, Cars, Ariel). Just like I can't imagine DL without Jungle Cruise, I can no longer imagine DL without DCA.