Hi, Lee Ann! Although I love Animal Kingdom Lodge and Wilderness Lodge for their breath-taking lobbies and fantastic dining, I have to give my nod to Wilderness Lodge because of convenience. The Wilderness Lodge is only a boat ride away from the Magic Kingdom as well as Fort Wilderness and The Contemporary. (In fact, you can even walk from the Wilderness Lodge to Fort Wilderness!)
For little guys, Fort Wilderness has so many activities that we've actually spent a vacation just on Fort Wilderness property. There's Chip n' Dale's Campfire Sing-A-Long, the Hoop Dee Revue and Mickey's Backyard BBQ. Plus, there's a petting zoo, horse and pony rides and carriages in the evening. At The Contemporary, there is world-class dining available at The California Grill and the best character dining experience (in my opinion) at Chef Mickey's. Plus, the monorail is accessible from The Contemporary opening up a whole new world of dining and recreation opportunities at The Polynesian and The Grand Floridian.
Back at Wilderness Lodge, you'll have Artist Point and Whispering Canyon Cafe -- two of the most sought-after dining reservations on property. Plus, there's a terrific pool area (with a geyser), water sports and activities, a kids activities center and a chance to be the Flag Family! (Ask about it upon check in!)
Just so you know, Animal Kingdom Lodge is no second-rate facility. It's deluxe accommodations with fabulous dining (Boma and Jiko), and most importantly, the animals. My kids would get up every morning and rush to the balcony to see what the animals were doing. It was truly an amazing experience. Yet, with all it's grandeur, you have to take Disney bus transportation to the parks and other areas, and it's not easily accessible from other resorts by Disney transportation.
I hope this helps you make a clear decision for your family and for your vacation. Let me know if I can help more...it's what I'm here for! Have a wonderful day and a magical vacation!