We went to Chamonix last summer and loved the beautiful town centre (stayed in a hotel right by the Aiguille du Midi so really central), the mountain views and food.
We'd like to go back this summer, but would rather do self catering (but still as central as possible). Probably driving from the UK.
The cable car stop in the middle of the way up the Aigiulle was on the side of the mountain, and our kids absolutely loved being there. They wanted to explore and climb on the rocks whereas to do a proper walk out of the valley was too daunting (and heavy on mine and DH's aging legs!) to tackle.
I and DD2 don't love a cable car (I have slight anxiety issues, sort of claustrophobic, too complicated and boring to explain). DD2 refused to get in the small cable cars and don't suppose she'd consider a chair lift (hoping to also save some cash on lift passes?). Both kids LOVED the luge ride thing.
So...any recommendations? Don't mind a different country (or mountain range), but want a small town ideally on the mountainside if that makes sense? DDs will be 10 and 12 if that makes a difference? Love Italian food (but Italy's a further drive so would need to be good!). Switzerland feels too expensive?