We just had a great holiday in Bali with the boys (nearly 4 and 2). So it is definitely doable. Some ideas:

- Jayakarta Apartments - if you google you will find a website for the apartments owned by a NZ couple. They are on the site of the Jayakarta hotel so you can use the pools, restaurants and other facilities there, but are bigger rooms. We had a one bedroom apartment (there is a 2bd also), and it was great. They put two rollaway beds in the living room for the boys and the room was quite big enough. Bottled water was also supplied in the room. This is in Legian, right on the beach and close to lots of things.

- Bali Beach Shack - Great food and kid friendly. Wednesday nights are great for the Aussie buffet with the Baby Balinese dancers - the kids love watching the young girls dance. They also do a roast buffet on a Sunday night.

- Lanai Beach Bar - A great menu and good value for any meal. We loved having breakfasts there - a huge breakfast for 40 rupiah and free internet if you have a laptop or iphone etc, and very kid friendly also.

We loved our trip so much we are going back!