Stayed in Dimas last year. Apartments were compact and there was a bit of a climb to get to them - not so good if you have walking difficulties. View from D6 was absolutely fabulous and the pool and pool bar were great.
Kassiopi is the best place and we are going again in June 06 - our 5th visit.
Have never taken small kids but can't imagine there is an awful lot for them to do if you don't like taking them into the bars. There is a park in the centre that is open quite late but don't get too exicited about it. Restaurants are fabulous and they love kids. During the day the pools are good fun for all ages, hire a boat and see some inaccessible beaches and DEFINITELY take the kids to Aqualand.