West Village with Kids?
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!
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.