Cayman is probably the best place in the Caribbean for a snorkeling trip for a kid. My son got his scuba certification there when he was 12. I haven't been in years (except for a cruise trip stop).
It's a great island to explore. Great beach. There are several resorts either on the beach or across from it.
When we used to go there, we'd get a condo. Never cooked, but it's really convenient for breakfast and coffee. Lots of room for family.
It's a big island with lots to explore.
I know you want all inclusive, but the room in an condo and the variety from eating out may make up for the convenience of an all inclusive.