Congrats on wanting to give your family a great vacation! Only you know what destination is best for you. Bali may be everything you dreamed of and more for your crew. It may also be further from home than necessary to accomplish most of your vacation goals that could perhaps be accomplished via Caribbean or Hawaii as others mentioned.

However, if Bali is the perfect dream destination for your family, then don't let others tell you it is too far. It only matters if it is too far for you and your kiddos.

I recommend reading some of the existing info out there on using miles to get to Bali and then start playing with some mock availability searches/check fares yourself to see how feasible the trip might be. In economy earning enough miles will be much easier than if you were shooting for a premium cabin.

Here are a couple resources for you to start your search (some are a little dated, but will still give you a good starting point):

http://travelsort.com/blog/tips-for-...ickets-to-bali
http://www.flyertalk.com/forum/conti...ing-miles.html
http://travelsort.com/blog/time-to-r...ay-first-class

Good luck with whatever you decide to do!