We went on a trip to Dahab last week from Taba. Nothing much there really, some restaurants and souvenir shops. I found that most of the shops sold the same things. You get hassled a lot there, by the shop owners. I wouldn't go back there personally, but each to their own.

It is quiet with very little to do. Certainly not much for kids although it depends on their ages whether that is relevant. If it is you'd be better off at sharm or hurghada