Package holiday 101

[graysquirrel]

I could really do with some help!
First time we're contemplating a package type holiday this year, me, DH, and 2xDD (12&11).
In my single past I was a European city traveller, and since having children we've done UK cottages and France camping, so I've never booked a package before and all my searching comes up with too much choice, so I could really do with some advice. So please hit me with your tips!!

It'll be for summer school holidays in 2023 (I know only a few holidays out atm, but looking now to get planning, also not worried about covid rules, we'll deal with whatever rules exist at time)

When is best time to book? See some hols for July23 out now eg tui, but is there more choice later on, with free child places etc? I'm used to center parcs, book asap!!!

Thinking majorca or menorca due to short flights.
Thinking all inclusive as we want to budget and get most paid up front. Also our girls are nightmare for living off random drinks/snacks through day more than set main meals.
We like a bit of an explore, but don't want to rent a car or rely on taxis too much, so somewhere within reasonable walking distance from town/beach/marina type place would be good, or a little beach train!

Don't like it 'too' busy, but guessing can't avoid that in hols! But I've heard to avoid eg Holiday Villages for that reason as they're quite full on, is that right?
Also, willing to pay what's needed but we're not rolling in it!

Any advice or suggestions would be very much appreciated!