All the Disney resorts are pretty kid friendly. I think the main variable is how much space you want and how many $$$ you want to spend. I think staying offsite is a lot more difficult with small kids, as I can guarantee that you'll want to take a midday break from the parks.
If you are able to spend a bit more, I can't say enough about the home away from home resorts. We stayed in a 1-bedroom at Old Key West last year with 5 and 3 year olds. It was very nice having them sleeping on couches in the common area while we had the bedroom (and the two-person jacuzzi tub!) to ourselves. Having a kitchen for snacks and meals was a huge advantage when we were getting tired of theme park fare, plus eating breakfast in the room saved us quite a bit of time and money versus having to buy breakfast every morning.
The only drawback about OKW is that the pool doesn't have the great theming of some of the other resorts. My kids still loved splashing around in it, so it was pretty minor. There are other home away from home resorts, so if that's important to you you could check out one of the others.
Good luck, and I'm sure you'll have a great time no matter where you stay!