Skiathos town is fine for kids, you just need to be mindfull that as it is a pedestrian zone with all cobbled lanes the access for most is by scooter.
It does not get rowdy and the clubs are only open peak season and are situated away towards the airport.
Its a laid back kind of place but you can find somewhere more lively if you need to.
Plenty of boat trips from the old harbour, either to Arkos, Llaria, Tsougria, round the island or over to Skopolos, and Alonissos and the marine park to see the dolphins.
Beaches are best accesed by bus, and every bus stop from no 5 onwards is near or by one, you cannot go wrong, but if you like the freedom of a car its up to you.

Skiathos town is definately not for kids. Music bars, disco bars and clubs are located in the town on or near Polytechniou st, also on the road round the bay towards the end of the airport runway. It does not get rowdy in the 18-13 sense, but it is very busy even out of season like June.

You can walk to the nearest beach at Megali Ammos, or take the very regular and legendary packed bus along the south coast to any point as far as Koukounaries. There are also boat connections with some points along the south coast, round the island etc.

Ferry/catamaran connections are frequent to Skopelos/Alonissos.

Sugar.... sounds like not somewhere people take kids at peak season... nevermind

Do not know what planet ouzo is from but Skiathos is great for kids :-

Place to stay is either Kokounaries (the best) or Aghia Pareskevi. Both have good beaches but have traditional Tavernas and some low key bars.

Travel by bus is 1.40 Euro into Skiathos Town for the evening. Lots of choice for more taverna's and bars, not at all rowdy, you would not even know that there were clubs at all.

Great round the Island boat trips...recommend the one to Alonnisos and Skopelos... saw a couple of Dolphins just of Alonnisos....fantastic.

It is a very popular Island with families such as yours. We went last year and had a good time. We first went in 1995 when my children were 3 and 7......wow what a great holiday that was. The value for money was unbelievable.
If you want a recommendation for apartments (2bed) in Koukounaries, try either The Panos Apartments (MANOS), Katia (MANOS) or the Sergio Apartments (First Choice).

Ah, but the question wasnt so much about Skiathos the island - rather Skiathos Town itself

To be clearer, I would not chose to stay, have an apartment,reside,vacate or relax by a pool (if you could find one) in Skiathos Town. It's a place to visit in the evenings, send your wife shopping and/or to catch a ferry to adjoining Islands.

So, you are really agreeing with me about Skiathos town, which was the original question. Looks like the planet concerned is earth

Personally I would stay, in Skiathos Town.

Yes It's a place to visit in the evenings, but great if you are already there.
Likewise all the beaches are accesible via the bus and you are guaranteed being able to board it. If you do catch a ferry to adjoining Islands, again not far to go the harbour is on your doorstep.

There are hotels with pools if you want them but just up the road is the tennis club with a great outside pool.

How about taking an early morning swim off the rocks at Plakes or with the locals below the bourtzi ?

I agree with Naughty, Skiathos Town is a great place to stay and we have been the last 3 years staying at the Bourtzi hotel. It has a pool and a fairly quiet location. The main street can get busy at night times but has a fantastic buzz and the disco music bar area is away from the main town so no problems with loud music etc. to keep you awake.
The harbour is lovely for meandering around in the evenings.
I would agree that Skiathos town is not the best place to stay with kids (not saying definate no, though) but down the island there some places nearer to fabulous beaches which may be better for staying with small children.
With Skiathos you can have great beaches and lovely scenery and a buzzing night life if and when you choose!!
cheers Jan