My DH and I just got back from our stay at AKL -- we don't have any little ones ourselves but saw many families with kids. I wouldn't hesitate at all to stay there with children -- especially if your kids like animals. As far as the buses go, we never had to wait long for a bus to any of the theme parks (don't know about the water parks because we didn't go to them). Two nights on the way home from late nights at a park, there was standing room only on the buses but that seemed to be the exception and not the rule. I have also stayed at AKL in mid-February and the buses were usually about empty then.
The restaurants at AKL are fabulous IMO -- my husband said that the meal we had at Boma was the best meal he's ever had...and he doesn't give praise like that lightly!!!
All in all, I would highly recommend AKL. Personally, I won't stay anywhere else!