I am from NZ and was raised in Christchurch. South island is far prettier (in my opinion). Christchurch has had the large earthquake recently and are still suffering from some aftershocks, but it is business as usual there. The only problem is that there is obviously some damage that will take time to repair.
I agree with the suggestions of Hanmer Springs, Blenheim, Nelson (great wine country, more for you than the kids obviously!) Picton is also up that way and very pretty. Kaikoura has the whale watching which is amazing. Going to the glaciers is awesome also, Franz Josef is just beautiful. Queenstown is beautiful, but pretty expensive. Akaroa is a French settlement on the peninsula not far from Christchurch. Very nice. If you can hire a car/camper van then that is definitely the best way to see the South Island.
Hope you have a great time, I am very jealous, I have not been home for a whole year.
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