Anorak, my granny lives in Hythe & my Mum & Dad have got a holiday flat there on the seafront and so we spend quite a lot of time down there.
My nephew loves the "Rombley Hythe & Dymchurch" railway as he calls it, it's great for the little ones but grownups too!
You may not be able to do this with your kids, not sure how old they are, but hiring a rowing boat on the canal is also good for a laugh.
As far as pubs, restaurants etc go well they often change down there, if you want quite a traditional fair head to Sotirio's, it looks a bit stuffy but they are very child friendly at lunch times. It's a while since I went in any of the pubs, can't really say I'd recommend them. There used to be but don;t know if it's still there a Mexican restaurant in the high st, which was OK, for a cocktail & plate of nachos!
There is a nice pub at Elham if you are going out that way.
The shops are a funny mixture of things there are several antique shops muddling along with charity shops & other bits & bobs. A nice gifty / card shop, couple of book shops, etc.
There's Waitrose for food shopping, plus butchers etc on the high st.
Canterbury is a day trip away for better shopping.
Folkestone is good for a breeze along the seafront but it's a bit run down and Dover is sh**e (well last time I went) although Dover castle is good - they have activities for kids usually in the holidays & you can go in the underground tunnels to look at the 2ww stuff (I was a wimp & wouldn;t go!).
For days out, Leeds & Hever castles are also nearby, Hever has an amazing water maze that kept kids amused for hours (take a change of clothes if it's open!!!!).
Nearest sandy beach is Dymchurch.
Good stroll along the prom at Hythe tho watching the kite surfers!
Well hope you enjoy the week Anorak!!!
Anything else let me know & I will try to rack brains.
(rack? is that right sp?)