I've always gotten an upgrade at the Hilton as a gold member.
It's a kid-friendly hotel, including a special children's program (for a fee) and a pool with a slide.
If a one-bedroom in the Lagoon tower is available for points and you have enough, I'd book that. You'll get a full kitchen with dishes, separate bedroom, and free laundry room down the hall since it's one of the timeshare towers.