T.S.
LOVE Hawaii!!!
I've been to Maui twice (Westin Kaanipali and a condo at Napili) Kauai once (Poipu Beach) the big island once (Kona Village) and we just went to Oahu right before Christmas, we stayed at the Royal Hawaii'n.
It really depends on the age of your kids and what you all like to do as a family. I like Maui a lot but to me it's too much like California, lots of strip malls, hotels and chain restaurants, so personally it doesn't feel all that exotic. Though if you go there you MUST have a meal at Mama's Fish House :)
Our kids are teenagers now so Oahu was a BLAST! Yes, Waikiki is a city (complete with office buildings, fancy stores and restaurants) but there's also a lot of history there. The Royal Hawaii'n Hotel is one of the very first resorts built in Hawaii and it is to die for. We loved visiting Pearl Harbor and snorkeling at Hanamua Bay.
My personal favorite island with little kids is Kauai. It is really laid back and feels very much like old Hawaii, hardly any big shopping areas, chickens running wild. It's like the countryside of the islands, beautiful and relaxing.
No matter what you decide it will all be good, I think it's impossible to have a bad time there!!!