Certainly does sound a good place for you, familygen.
Swisscare is very peaceful, fantastic beach, wonderful pool, a playground for kids and the best spot around for snorkelling - though you need to be a reasonably good swimmer as it has a 'proper' coral reef with a shallow lagoon off the beach. So you have to swim out to the seaward side to snorkel.
The Coral Hilton has a good AI package, and a bit more by way of activities for children - two pools with kids areas, playground, table tennis and pool table in the open near the pool. The beach is smaller than at the Swisscare, but has plenty of sunshades and easy access into sea that is deep enough to swim and play in. There is a jetty with lots of fish around for snorkellors to see, a small coral garden to the south of the jetty (about 50m away) and a 'Huose reef' about 50-100m out to sea. There is also a patch of rocky ground just a yard or two from the shore which attracts a surprising variety of marine life. Now Thomson are selling the hotel they seem to do doing more for kids too - there are boards up with a list of daily activities (ourkids are too old so we haven't tried them out). Hilton also has a (pay for) watersports centre with banana boats and ringos, but pedalos and canoes are part of your AI deal.
For novice divers the Hilton is excellent. Emperor divers are on site and try-dives and training courses are run directly off the hotel beach. At 8 your daughter could do a 'Bubblemaker' trial dive (probably in the pool) but at 11 your son should be able to do the 'Discover scuba diving', or possibly even an open water course.