Friends of mine stayed at the Nick hotel. They loved it. The inside of the rooms is not as garish as you might imagine just driving by the place and the kids have their own area. You can pick the theme of the kid area - they had Spongebob, I think.
The best thing was that there is a toddler area by the pool that has cushy stuff covering the ground, so if the kid falls he doesn't crack his head open or anything. There are little fountains that shoot water up gently. And the whole deal is enclosed, so the kid isn't wandering off anywhere. We two grown ladies sat and chatted with each other and didn't have to watch the baby constantly while he had a grand old time.
We met Dora, who spent a ton of time with him. Even followed him around when he walked away. The characters are wonderful!
I didn't actually sleep there and wouldn't choose it if kids weren't involved, but I simply can't say enough good things about the place. You cannot do better where children are involved than the Nick hotel.