West Village with Kids?
Definitely take them to the Cowgirl Hall of Fame on Hudson and W 10th. Really fun and the food is great if you remotely like southwestern, updgraded trailer trash kinda grub. We are childless adults and go there a lot for salads (the "all chopped up" is killer), fried chicken, BBQ pork sandwich, etc. (not to mention the frozen blood orange margarita which'll definitely give everyone a nice relaxing feeling...), and the kids will find plenty to eat even w/out the dreaded kids menu. Plus they'll love the kitchy cowgirl artwork all over the walls.
Otto Pizzeria is very family friendly, and although the food and service get mixed reviews here, I think it's a good suggestion for a group with kids. Options range from plain pizza to more exotic flavors (rustic Italian) on a pizza or pasta dish. The cheese and meat plates are great, too. And make sure to get a few different gelati for dessert!