Are you going with or without the kids? If you are going with the kids, I agree with the previous poster that Club Med is the way to go. They have a bunch of resorts in the Carribean and Mexico, although the really nice one for kids is in Ixtapa, which is on the west coast. They have a program that was designed for them by Crayola. I believe your kids would be separated, the 2 year old would be with 1-3 year-olds and the 5 year old would be with 4-11 year olds. We haven't gone, but some of my friends have and say it's wonderful. My goddaughter cried to leave! Plus they have included night-time babysitting, so you and your hubby get some alone time after dinner.
If you are not going with the kids... for god sakes girl, go do something a little more exciting! :-) My husband and I lived in Panama for a while, as well as Costa Rica, but if you want to stay in the Carribean: Puerto Rico, US Virgin Islands, the Bahamas, and Grand Cayman are lovely. Curacao and Grenada are really cool, and I've heard that Trinidad/Tobago is amazing. I've also heard that Aruba is just beautiful. The cool thing about more distant locales in the Carribean (distant being closer to Venezuela than the US) is the really unique combinations of African and Latin American cultures. So, if it's just you and your hubby, I say go someplace really exotic and romantic. You could try the Thorn Tree at Lonely Planet's website to get some ideas and suggestions from well-seasoned travelers! Hope you have a GREAT time, wherever you go!