There are a ton of family friendly resorts in Hawaii, you won't have a hard time with that. Budget friendly will be a different story.
The Hilton Waikaloa on the Big Island is amazing...but not budget friendly. But if you want Hawaiian Disneyland- that is it!
We recently rented a condo for our whole family/extended family and had a wonderful time for a good price. They had everything you would need for kids at the condo too (sippy cups, strollers, play pen, boogie boards, sand toys etc.) And this was an upscale condo at a nice complex with a beach. Just another option to consider if you have a low budget in mind.
Hawaii is very expensive in January, but it is worth it for the whale watching. Can't help with the family friendly resort question. We are planning a trip for either 2011 or 2012, but we will be staying in an efficiency.
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