Hi,
we had a kids den room too for the same reasons and it worked really well. We had a room in block 6 on the ground floor and if you can I would ask either for this block or block 5 as they are both in excellent locations for the main pool and the beach.
At Christmas the main pool was freezing and too cold to use (although kids seems to not mind and were happily using the slides etc) but it was too cold for me and DD so we stuck to the beach where the sea was warmer and DD and I used to walk out in the sea to see the fish and look for shells, hermit crabs etc and have a little swim. You could use the heated pool which we only did once as it was very busy and DD prefers to play on the beach. Weather was just about perfect - mid to high twenties during the day and although cooler at night, we only needed a light cardigan on a couple of occasions.
As for tips, my biggest would be use the laundry!. They have an offer where you can have as much as you can fit into a laundry bag washed and ironed for £20. We managed to fit 62 items in and had this done the day before we came home so came home with an entire suitcase of freshly washed and ironed clothes. Best £20 I spent.
We got a few t shirts as gifts and got them from a small shop near the big supermarket (out of the hotel and turn left). T-shirts were 20 egyptian pounds each (£2.20) for childrens and 45 each (£5) for adults and are beautiful quality. If you need local currency don't bother to get it before you travel as the hotel gives better rates than you can get here, but for the best rates use the cash points at the banks outside of the hotel. There is an HSBC on the right side out of the hotel.
We used the beach bar almost every day for lunch (they served grilled and fried food every day from 1.00) and used to have a picnic on the beach of grilled chicken fillets and chips with bread rolls most days. We always used a foam anti-bac cleanser before every meal and never once got sick or had any tummy issues. Our DD had a lovely time with the entertainers and used to rush on stage to hold hand with one of the crew (once even when he was hosting the evening performance que ahhh's all round the audience). She was too young last time for the kids club as it starts at 3 yrs but this year I am sure she'll sign up for a few sessions. They even have evening sessions so parents can enjoy a child free meal in one of the al a carte restaurants (we enjoyed the indian and chinese the most).
Sorry for prattling on, if you need to know anything else, just ask.