Everyone I know stays in the Varadero area. Lots of new hotel buildings over the last few years. If you take "trade goods" with you hand them out when you get there to the staff instead of waiting till you leave. My buddy who goes every year does this and is always treated by the staff great because of it. Upgraded room, towels when you want them. Stuff you expect here is not standard down there.
As to taking your family it's a more laid back lifestyle there. Great for people who just want to relax in the sun and read a book. As one friend describes it "It's a vacation that you don't need another vacation from when you get home".