We've just got back from the one in Playa Blanca, Lanzarote, and we had a great holiday.
Our room had a mini kitchen with fridge, microwave, kettle, hob etc. We went all-inclusive, and would agree with ash that the food was good but not fantastic. There was loads of food though, plenty of choice, and there was even a little mini servery for the kids to help themselves. The restaurant, and the whole village itself, was very family friendly. There were no raised eyebrows over tantrums, spilled drinks etc, which made it much more relaxing for the parents. All inclusive was great - no shopping or cooking all week!!!!
Our kids (3 & 4) really enjoyed the early evening entertainment - the kids' show runs from 8-9pm, then there's grown-up stuff on after that.
There were a few niggles, but nothing major. The tiles round the pools are all very slippery, so you need to nag the kids to walk, not run. We had a couple of minor issues with the room that were not dealt with (but they didn't really bother us so we only mentioned them once).
Arrecife airport has little to recommend it, either. My tip would be to start queueing for the loo as soon as you arrive!
All in all, though, we had a great time and would definitely think about going back to either that Holiday Village or a different one.