M.B.
We just took our two year old during the first week of June and had so much fun. Our condo had a kiddie pool and big pool and was right on the beach (Silver Shells), so we would take the kids the pool in the mornings, go back for lunch and a nap for the kids and then spend the afternoon at the beach.
We also went to Fudpuckers, The Crab Trap, The Back Porch and Mellow Mushroom pizza with the kids. Anyplace we went to eat, we tried to get seats by the beach, so the kids could look out at the boats and water. The Back Porch had a great little playground set on the beach for the kids to play on while we waited.
There is also a great little shopping area closer to Sandestin (The Commons) that has a splash park in the middle of it with hot dogs and ice cream that we did one day.
We also did a Dolphin cruise, but I don't think the kids were that impressed (all 2 and under) and I thought it was pretty boring. We only saw 2 dolphins and it was a long time to be trapped on a boat with little ones.