A 1-bedroom will have 2 bathrooms. The bed arrangement depends on the ship and the location. There will be a master bedroom with a queen bed and a living room with a double sleeper sofa. Except in the Accessible suites on the Magic and Wonder, there will also be a drop-down bed. On some Magic/Wonder suites, this drop-down is in the bedroom; in other suites, and on the Dream/Fantasy, it’s in the living room.
When my family of 4 sailed in an Accessible 1-Bedroom suite (since that was the only upgrade available) we needed to get a rollaway since my son and daughter would not share a bed. If 2 of your kids are OK sharing a bed, that won’t be an issue.
Whether you can upgrade everyone from 2 rooms into 1 suite is another issue. I think lanejudy is correct that upgrades are 1:1. If that is true, you could upgrade 1 room and keep the other room for extra space (and bathrooms).
DCL doesn’t care where people sleep, and can provide additional keys. However, the people booked in the 2nd room might not have access to the Concierge lounge if they are not booked in (aka paying for) a Concierge room.
You could call DCL or your
travel agent and ask about the cost to change to a 1-bedroom now. The upgrade cost at port will probably be somewhat less than that.
For a 7-night Med cruise on the Magic in 2019, the cost at port to upgrade 4 people from a Category 4 to a 1-bedroom suite was about $10,000. The cost to book concierge rooms has risen considerably in the past few years, so I would expect that upgrade costs have risen as well.
Your family would benefit from sailing in Concierge, with extra space, lounge access, and hosts providing basically whatever you need. Whether the benefits are worth the cost is up to you.