I like my luxury on holiday - all inclusive is heaven. But I prefer to do things at my own pace and not be told when to eat/sightsee. I can't see how cruising is particularly child friendly either
It's really a case of picking the right cruise for your family. We're just back from a cruise round the Caribbean as a family of 5 on one of the 'big' ships. My DH and I had cruised before, but not with the kids (two teens and a 10 year old), so we did wonder how they would like it.
They had an absolute blast. There were slides, a sports court (basketball and football), trampolining, high ropes course, mini golf, swimming pool, treasure hunts, films, table tennis, giant chess, deck shuffleboard. They didn't stop all holiday. And they never even made it to the kids clubs.
Food was great for both kids and adults, buffet style, pub style, or more formal restaurants, you ate when you wanted and with who you wanted.
If you like a real taste of luxury, you could upgrade to a suite complete with a exclusive swimming pool, gym, restaurant and bar, and a butler! (we didn't, it was quite expensive and we didn't think we'd make good use of it as there was so much else going on.
Of course sightseeing must be done on certain days, but that really isn't a problem for us. You can choose from organised boat tours, arrange your own tour, or just do your own thing. You can come and go as you please, getting on and off the ship as many times as you like while it's in port. And it's quite wonderful waking up to look out at a new view each day.