Anonymous wrote:SE France and Switzerland has my vote. Check out the route des vines d'alsace area- it's magical. Probably one of the most spellbinding places on earth, and our kids love it. Colmar is the main town.
Don't go to Belgium. It's so depressing. That is the last place you should go.
Italy is good for kids too. What with all the pizza and gelato. I think Italian food is blah though and prefer french. And if you go to se france you get tarte flambee which is french pizza.
Bruges in Belgium is one of the loveliest small towns in all of Europe. Touristy, yes, but it makes visiting Belgium worthy. Brussels and Ghent and Antwerp all have lovely historic city centers as well. And food is quite good. And the beer, ah! So, yes, while there are depressing old industrial towns it's not like you'll be spending your trip there, just like Europeans don't visit depressing old American towns.
OP, the advantage of hiring a car and driving is that it is a bit easier for a family of five and you control the schedule instead of waiting for trains and rushing to catch the train and lugging luggage all over the place. The downside is that for a family of five you need to make sure all your luggage can fit into the car! Most European rental cars are on the small size. You can get bigger cars such as station wagons, but they will cost more (although probably still cheaper than 5 x XXX train tickets). And you do need to be careful about the visibility of luggage in case of break ins (it does happen, more often than you might think as European criminals are pretty good at spotting tourists in their rentals).
And the other downside is that while it's easy to drive on European highways and interstates, they tend to be boring. Just like American interstates! And don't underestimate the distance from place to place either. It's not as long as in the US but it still takes time.
You do have a lot of options. If you like small villages and hiking and perhaps beaches too, then the Normandy/Brittany coast is wonderful with great sights like Mount St. Michael, St. Malo, and the D-Day beaches and the American military cemetery (very poignant). Then you can swing down through the Loire Valley.
Or go eastwards towards the Alps? There's the Strasbourg-Colmar-Route de Vin route which has a germanic flavor without leaving France proper.
The Alps proper would make a stunning family trip if you love hiking but Switzerland itself is EXPENSIVE. EXPENSIVE. And I mean EXPENSIVE. Spectacular, however. It's more budget friendly to go to Austria and the Austrian Alps (start in Salzburg and end up in Innsbruck). Lots of great hiking, small villages, lakes and spectacular drives.
Regarding food, I would not unduly worry. There are plenty of plain food in France and Italy and Germany. Simple sandwiches, simple pasta dishes, pizza everywhere, lots and lots of potatoes in various guises (European kids scarf down fries just as eagerly as American kids).