Aside from the additional cost, I have actually been to Bali and I dont think kids ages 2-7 would truly appreciate all the culture that is there. Beaches there are good but personally think some beaches closer to home like Hawaii and Carib. are better. Also kids often like the hotel pools and some hang around there all day long but many hotels and pools closer to home are also nicer and much Bigger. I would go to Bali for the culture and perhaps the romance and this is often wasted on young kids as their taste differ at that age- not to mention the language barrier once outside the main hotel or tourist spots.
Again, just my POV.