Hi mumof3. I have been to Bli may times at different times...

Hi mumof3. I have been to Bli may times at different times within different seasons. I recommend to many friends not to stay in the busy touristy areas around Kuta but to possibly stay on the outskirts of this area in places such as Legian and Seminyak. Depending if your family is into surfing, these areas are not the best for this time of year as the wind and tropical weather make for rough seas and the main beach is mostly dirty.
I like to stay on the other side with my family if travelling around Xmas. I have stayed in both Sanur which has everything Kuta has but is quieter and has great resorts and villas for families. Also Nusa Dua you can find family orientated resorts but is very European and not much to do outside the main resorts.

I have never stayed at Club Med so i'm not sure about that one. I know Bali has plenty to do for families and you will have a great time if you do your research. A good site is tripadvisor which provides feedback of peoples experiences about their stay.
Any villa or resort within walking distance to the beach is recommeded.
I could propably go on but do your research and ask around and im sure you and your family will have a great time
Merry Xmas lol