I think it is not so bad out of season. Mostly full of English and German ex-pats who go forthe winter. There are some good child-friendly places like Terra Mittica and a water place whose name escapes me - oh, think it is Mundomar? Calpe is close and less "union jack chips with everything". Also Denia and Jandia both lovely.
Benidorm has really nice beaches and is not as bad as everybody makes out although its built up. It has a nice zoo (Terra Natura) and is in a good location for sight seeing local towns (Javea and Moraria are the nicest). Be aware however you can have hot days OR cold and rainy days so pack for variable weather