My kids love hawaii and we have done Disney when they were 2 / 4 / 6 / 8 and the following year. I'm avoiding Disney for a while until they are all bigger. Now they are 4/6/8/10.

Hawaii the kids love the beach and pools and such as well as the Zoo and other things as we've been there many times as a family (to get anywhere we have to travel through HNL as we're in the pacific). I stayed at a Resort Quest Beach Towers recently and have stayed at other resort quest properties in Waikiki, they vary from 150 to 400 a night but are one to two bedroom condo's. I wrote a report of the Beach Towers from a trip a few weeks ago in the Hawaii Thread. But there's other places, like the Banyan is a block away from the beach and has a kids play area as well. We prefer a kitchen and such with the kids and more room. Plus the rates in some of the condo's are cheaper then the regular hotel rooms. But if you're using Hilton points then the Hilton is a nice property.

We've done Vegas and overseas (Asia side) but the kids were happy anywhere we went. If you're gonna burn miles, Hawaii is a decent place. Depends how many miles you have, if you want a beach resort type area then there are a lot of places in Indonesia and Malaysia that are much more pretty, costs less for incidentals, and the resort areas are much less populated. My kids love Bali and some of these areas are attempting to gear more to families and kids with other things to do for children. But it's a much longer haul then HNL.

If you decide on Hawaii slippas on the hawaii thread helps a lot and has listed a good guide to Hawaii plus there's a lot of good folks that watch that thread that can give you a lot of help and pointers. Don't limit yourself to Waikiki, there's a lot of good resorts in the other islands as well. I'll warn you however, reward travel to Hawaii is the most often used reward travel so book early. Or that's what I'm told by a few airline agents.