I can recommend this place: Hotel Pestana, Porto Santo .
We went last year with a 7 and 10yo, it was great. The pools are really lovely, the beach is gorgeous, and hotel is right on the beach. There's kids clubs (though we didn't use the clubs, we used their facilities, and they were fab, all the children in the clubs looked as though they were having a whale of a time), there's pool activities (aerobics, volleyball, water polo etc), but we didn't do stuff like that, we just lounged all week.
It's not too hot- 27-28 all year round. It's by Madeira, and part of Portugal, so flight is 3.5 hours, not 2, but transfer from airport is about 10 minutes (the island is tiny).
The Island safari by jeep was really interesting, visiting the basalt columns, the mini desert, botanical gardens, viewpoints at either end of the island, and an old-fashioned Hacienda/plantation type house.
It's all inclusive- the pool bar/snack place is really good quality food, the restaurants are shared with their sister hotel next door, and you can go between either to eat or for pool/bar etc. We're not big drinkers, but the cocktails were lovely!
You can get last minute, departing various airports, under £2k for 2 people, 1 adult, 1 child, no problem.
No-one has ever heard of it... but it really was a lovely holiday.