This awful situation happens with all airlines and always has. We've all been there. There's nothing anyone can do about a mechanical problem except try to fix it. The pax end up waiting forever. There are a few choices available once you are informed that the flight is cancelled. Here is the brutal truth ... you try several different ways to get rebooked, be prepared and know how to do that. Be flexible. Once you get your next flight sorted, time to find your own hotel. Counting on the airline to arrange your hotel is the last thing you want.
Always have at least two credit cards available and know how to get online to book an airport hotel. If you can't book a hotel with a shuttle, take a taxi. This is the time to be self-reliant. Sure, the airline is supposed to house and feed you, but how long are you willing to wait, and how many hoops do you want to jump through? Your first priority is to get rebooked to your destination and second priority is to take care of it yourself, get a decent meal and a comfortable night's sleep so you're ready to take on the system in the morning. Travelling with children does not get you any special favors, it's your job to keep the kids occupied, fed and rested. Above all, be polite to everyone, the airline staff did not cause your problem; don't add to their angst by being obnoxious or expecting special treatment. Treat them with courtesy.