With two young kids, I too have children. I might recommend the Fishmarket, they have great window seats and they have a good selection for children. If you would like to go a little upscale, I would recommend Roys, which is located at the Marriot downtown at the Harbor. We have dined at Roys with our children and they are extremely receptive to young people. The childrens menu is 4 courses:
sliced apples and carrots
The pace of the childrens food keeps up with the parents very well. Their childrens menu has some great items.