Hi Nic.
Although Praia da Rocha has a beautiful long beach,I don't think it is the most representative of the Algarve's resorts and there are certainly lots of places where the development has been much more restrained than in P. da Rocha.
Your problem,as I see it, is that you need a place where there is plenty for the little ones to do and only the more 'developed' resorts will offer this.I think perhaps that you would need to make a bit of a compromise and choose a resort which fulfils your wishes as far as beaches and restaurants are concerned, and be prepared to travel to the water parks for the kiddies.
As a suggestion take a look at Lagos, a working fishing town which has adapted to tourism whilst still retaining its Portuguese authenticity; you'll have a choice of beaches, from a 5km strech of gently shelving sand to small, rocky coves which would be ideal if the youngsters are 'Pirates of the Caribbean' fans.From the modern marina you can take barbecue cruises or a dolphin safari, and the local fishermens' boats will take you into some of the most spectacular grottos you could hope for.At night the cobbled streets are alive with entertainers - musicians (from rock to classical),jugglers,fire eaters and human statues, and one of the town squares usually has a small carousel for the kids.You'll be truly spoilt for choice as there are any number of excellent restaurants in town, all of which,together with the bars, are child-friendly.
If you are hiring a car, then all the water parks are within a 30 minute drive of town;if you don't have a car at your disposal, then coach trips are readily available from town.
If you want to check out the Eastern side of the Algarve,Lagos is on the Algarve railway network, but bear in mind that the railway doesn't serve all the coastal resorts as it tracks about 5km. inland for part of the length of the coast.
If the sound of Lagos appeals and you need any more info., don't hesitate to ask.

Hi Nic

I would second Lagos, we had a two week family holiday there this July. My kids youngish teens but it would also be suitbale for young families. It's nothing like Praia d Rocha and has far more character. We did hire a car to get out and about, but I wouldn't say that was necessary you could have a perfectly nice holiday without.

I can recommend the Marina Club Apartments if it is an apartment you are after.

If it's a hotel you want come back on as I am sure someone could recommed one.

Another place that might suit is the old town part of Albuferia but I am sure someone who knows more about that end will post with information on it.

Doe

With the little ones being only 3 and 7 I think you might find Albuferia old town has less walking.

Many thanks for your replies. Like the sound of Lagos, I'll do a bit of research and see what I think. I'm actually thinking about next years hol (Menorca booked for this year), perhaps doing DIY for the first time. Anyone know when the cheap flights start being advertised? Would want to fly from Bham or E Mids.

Best to register with the budget airlines for e-mail updates but don't rely on these as sometimes flights have been on sale for a couple of days before they let you know and sometimes they just don't bother at all.Start looking towards the end of November.Shout if you need recommendations for Lagos nearer the time.