I stayed at Casamagna last year, and took the 25% off food option. It includes everything...alcohol, room service, beach service, etc. It ended up being a great deal. We are actually going back again this year and doing it all again. I would pay the cash over the points!
Also, you probably already know this, but if you are willing to forego the suite and just book a regular room, you will also get free breakfast and free transportation as well. Probably depends on ages of your kids! Mine are little and end up crawling in my bed anyway! LOL!!!