We have leather and it is great for the kids. But it became an issue with our cats -- since they eventually decided they like scratching the arms. Plus even without that, just jumping around, they knicked it here and there. If we were religious about putting claw caps on them, we'd be OK, but we are not.
Our very cheapest couch - which we got used at a yard sale -- has help up the best. It is some sort of a microfiber. That said, our kids don't use it much so there are not many spills. But it is no worse for the wear from the cats.