We have been bringing our kids to Shula's since they were as young as 16 months and the staff, without exception, has been nothing but kind and gracious.
Going back a few years, they did not have a children's menu (nor did they accept the TIW card). Now they do and it's on par with most of the other children's menus around WDW. I'm sure this has something to do with the family nature of WDW, vs. other locations.
Further, they expanded the appetizer and side dish menu several years ago as well, so there really are a lot of choices for kids who can't/won't handle a steak.
http://www.donshula.com/locations.php?sub=2&l=1&restid=10
That said, it is true that the key is how well-behaved the kids are. If they can stay in their chairs (or your lap) and aren't particularly noisy, it will not be a problem. But it's not the kind of place where they should be allowed to run around and any tantrums or crying spells should immediately be taken out to the lobby.
If that sounds good for you, by all means take them. We have never regretted doing so.
They do charge a plate charge for sharing, but my wife has shared with one of the kids before and they never even mentioned the charge. That could be because we also order sides and appetizers.