Very true, although I must say that I was a bit startled to hear the OP say that Kauai might not be a good vacation destination with young children. Sure, if you're interested in nightlife and a party scene, Kauai has its obvious limitations, but it's probably one of the best "exotic" vacation destinations for kids in the world. The only weakness I can think of is a lack of an organized "kids camp" type of set-up, but you can probably find that at the Hyatt if that's what you're looking for.

For most folks with kids, I would recommend the Waimea Plantation Cottages (especially on their half off Entertainment card rates) as the perfect place to experience Hawaii with kids. Admittedly, that is a bit slow -- days spent on the beach snorkeling and swimming , buying Taro chips in Hanapepe and shave ice at Jo-Jos, attending a local hula demonstration, walking the swing bridges, watching the sunset from a hammock on the beach, etc. But simple pleasures are obviously not what everyone is looking for on vacation.