I'd go with the Sharm recomendation also, the snorkelling is really good as long as you stay outside of the Nama bay and Sharm bays themselves, theres usually a coral shelf/ beach that the little ones can snorkel and play in with sandy bottoms and plenty of pretty fish; then just a bit further out the drop offs provide spectacular snorkelling/freediving for everybody too. The good thing is I suppose, that the Red Sea is very salty and gives more than average bouyancy which is nice for the less confident youngsters.
Nama bay has plenty for to keep the family entertained but no theme parks

Have a look at
this forum, its full of info about hotels resorts etc, all over not just Sharm
