I actually like Cairo a lot. We were last there in mid December, and stayed at the Le Meridien Pyramids. The hotel was fine, and a great deal (whether with points or cash) -- like everyone in the tourist industry, they've been hard hit, and are offering discounts in one way or another. The location (for access to the pyramids & sphinx) was great.
We didn't see go to the museum because of the protest activity happening at the time in and around Tahrir Square and central Cairo.
Depending on the age of the OP's kids, I would also recommend going to Al Azhar Park. Lots of great play areas for little kids (mine are both small), decent eating options, great views.