We did a trade through RCI last summer and found it to overall be a wonderful experience and even better vacation!
We ended up at the Ron Jon Resort on Cape Canaveral, which is now operating as a Holiday Inn property. They are a short tram ride or walk to the beach, where we got a big kick out of watching the cruise ships as we played in the sand and ocean with our 4 year old. After a morning at the beach we went back to our spacious 1 bedroom (160 points for the week) and made lunch and took a rest. After this we spent the afternoon at the pool, which was more like a mini water park, with a lazy river, large slide, kids splash area and the huge feature pool. They also had an indoor playground as well as some wonderful family shows I'm the evening, including animals and a magician.
For dinner I used tripadvisor to scout out the local scene and it did not disappoint. We spent many nights at the cruise dock for dinner where DD could wave to the outgoing cruise ships. One night we did travel into Cocoa Beach and I was happy we had decided to avoid the tourist area for the most part.
Sure, we could have rented our DVC points and maybe it would have been cheaper to pay with cash, but as a PP said, this was so much more convenient.
Make sure once you find an eligible resort to trade into that you do your research and make sure it is right for your family.