Mark, I love talking about Bali! I think Kuta is good for a family trip. There are tons of things to do there, including surfing for the kids. Kuta beach break is super mellow, at times, and there are all kinds of board rentals on the beach.
I like staying in Bingin for surf, and Lynnie's is the best place to stay there. Cheap and mellow, and great food. But there is not much to do down south. The other side of the island doesn't get the favorable winds in July, except in the morning, but is also not as crowded.
Ubud is inland but good for families and kids, kind of the cultural center of Bali. Hope this helps!
Pat
