J.M.
We grew up near there and have spent a lot of time there. Some of our favorite little towns are Fish Creek and Egg Harbor. All the towns are close, you can usually get from one place to another in 30 mins or so. Two places that might be good for families are condos in Egg Harbor at Newport or the Landmark. In Fish Creek there is a hotel called Apple Creek. All have indoor/outdoor pools. Even though it will be August, it is nice to be out of the sun sometimes. Some of our favorites to eat at the Misson Grill in Sister Bay (kind of Fancy), Olde Stage in Egg Harbor (casual), and ice cream/custard at Not licked yet in Fish Creek.
Have fun, we are hoping to get up there this weekend.