You're clearly trying to do the right thing by your kids and help them grow up in a more wise and worldly way. Good for you.
As you stated, you are the only one that say how your kids would like or not like Dachau. My wife and I (also from BOS) went there in 2012. Granted we weren't with kids but we thoroughly enjoyed it. It's not a 'fun' place but it was an 'interesting' place.
I will just throw this out there- yes you can drive there or take the train from Munich, however we went with a tour guide. We used Radius Tours
http://www.radiustours.com/en/englis...ame&height=367
I find you get so much more out of these places with a guide. With someone telling the kids the history and stories, they may be more interested than just going there and walking around. Just a thought.