You hear the stories about the yobbos in Bali, but I have been there 7 times and even though you will see the idiots making fools of themselves, they are quite harmless.
Make sure to read the Bali forums before going. What to do, security, taxis etc...
My girls are 11 and 16 and love staying in the hustle and bustle of Kuta.
The dynasty is one of the best hotels for kids (I haven't stayed there). Bit pricey and probably booked out for January.
We use to stay at the Inna Kuta until they ripped up the pool and built a flash hotel in front of it. It is up and running again with a new pool. Havn't stayed there since the renovations. Nice hotel. However the last time we went to Bali we stayed at the Wina Holiday Villa (It's not a villa, don't let the name fool you.) I couldn't fault it for the price, location, food, service.. Will definitely be staying there again. Up a small lane and small walk to Poppies 2.
You could do Candidasa. Apparently getting quite popular and has some good kids hotels. Not so many bogans there and not as "in your face".
Anywhere else you will have to taxi it to get to the action...
If you have any questions re: kuta, just ask. I think I'm an expert now..
