We stayed at BCV in 1/04, and also did not want to burn a day on our passes, so we ate at the Flying Fish at the Boardwalk. I know everyone raves about this place, and we did have excellent service and some of the food, but not all, was excellent. Our bill ran $130 w/tip for 2 adults and one child, so this place is not particularily budget-friendly, if that is a consideration for your family. I personally think there are other great places to eat around the BW loop, and others have mentioned a few. One to consider is Beaches & Cream at the BC. B&C has great burgers/fries, and the ice cream treats are to die for!
For DTD, which is a location you are considering, Wolfgang Puck's Cafe has a wonderful and varied menu with lots of offerings for kids. It is bright and cheery inside, and your kids can go to the dessert bar to see all the offerings available and to watch desserts being made. It's fun!
If you don't mind hopping on the bus and transferring to the monorail at the TTC or MK, 'Ohana is always a fun way to kick off the start to a magical WDW vacation! There are hula hoop contests and coconut races to keep your kids interested, and if you time it right you can see the fireworks from the MK. The food is fairly kid-friendly here and they will substitute real kiddy food for their family-style meal, if you prefer. 'Ohana is one of my DS's favorite WDW restaurants!