It's Disney, kids are welcome!!!! We've been bringing our children there since they were babies and have never once felt out of place. My youngest DD calls it her princess hotel and is not happy when we stay somewhere else. In fact, it's not vacation until she's sitting out on the balcony eating her grilled cheese from room service. During the week, they have daily activities planned for the kids at the courtyard pool and they had a story time and craft night for children ages 4-7 at the M. Mouse Mercantile store in the main building. There's also the Grand Adventures for Kids, which is an additional charge, but they can have tea with Alice, go on a Pirates Cruise or make a fabulous treat with a GF chef. For dining, you have Gasparilla's Grille which has surprisingly good counter service at a fair price and it's open 24 hours. They also have an arcade in there. Definitely a hotel that caters to children and I wouldn't hesitate to let the theme of the resort scare you off.
For rooms, I like the Sago Cay building for it's quiet. You can pay for a garden room, but request marina view. Very close to the main building, transportation and pools. Another good choice is to ask for a corner room. These are slightly bigger than the standards and include 2 balconies. I would just stay away from dormer rooms as they have the smaller, enclosed balcony due to the pitch of the roof. This site has a layout of the rooms,
http://www.the-grahams.net/gf/rooms.html
Tammi