We stayed at Marriott Kauai in May. It was wonderful. We had top floor of the large wing that is farthest from the beach. This has the highest and best view, but longest walk to the ocean.
We had a large room in the double-upgrade category (we paid for 1 class, got 2nd class comped with Gold status), but noticed that the single-upgrade class rooms (lower, in other wings closer to the beach) looked pretty nice too.
With kids, I would *probably* want the 2-room suite. 2 bathrooms and a separate sleeping room sounds like a good option for both kids and adults.
But even if you have to share a regular room with the kids, this is a great resort. Kids will enjoy it, but it isn't over-the-top Disneyesque cheesy.