Just wanted to add, I've been to the "Cabo area" 4x in the last 18 months... here right now actually (actually an hour north, near Todos Santos). We travel all over Mexico (my wife's family is from Mexico). The Cabo area is among the 'safest' as far as minimal cartel activity, compared to many other areas that are more disputed. Of course consider all the normal travel precautions one would take anywhere (ie, dont wear flashy clothes, jewelry, etc etc), but we've never felt unsafe.

As far as hotels/resorts that are family friendly, look into ones that have kids clubs / activities such as the Hyatt Ziva Los Cabos (all-inclusive), Marival Residences, Fiesta Americana, etc. Many, many choices depending on what you are aiming for.