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I would also recommend a boat sightseeing trip. We were there without my daughter (who was 3 at the time we went) but there are some nice parks and gardens that your kids will enjoy and also there was a neat looking museum near the water (not far from the train station, actually) that was maybe science and technology or something but we noticed a lot of kids there. You could check into that - it might have some appeal for smaller kids. Amsterdam is also very bike friendly - you could look into renting bikes with child seats and toodling around that way. We stayed in a nice residential neighborhood at the Hotel Zandbergen (which I would also recommend) but the neighborhood was great and had a lot of very nice, neighborhoody and family friendly restaurants.
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