we had the same dilemma, girls will be 5 and nearly 2

we plumped for the Holiday Village Sharm, with Firstchoice just for the size of the complex and they seemed to have so much to do perfect for us

although slightly concerned about the quality as it is a new hotel, but have thought will just transfer to the coral sea, if after opening reports appear rubbish HTH

Hauza beach sharm el sheik
we went last year at xmas my son was 10
they have a zoo, water chutes, big beach, kids club where they can also have there dinner while you have yours in peace,
we are going again at summer
sit on the beach and lots of food areas
any thing else just ask
taxi 5 mins for naama bay