I think you have to deside what kind of living you want first.
Cabarete is a wonderful, lively small town by the ocean.
Beaches, shops, restaurants, windsurfing, kite...alots of fun
Playa Dorada is a tourist complex of 15 hotels, a golf course, a plaza with movie theatre, shops, restaurants, bars etc. And of course a beach.
Here you have 15 all inclusive hotels to chose from, and 1 boutique hotel ( maybe not, as you have kids )
In Cabarete you are in and around the city, depending of your hotel choice.
In Playa Dorada you are appr. 6 km from Puerto Plata and all around you is tourism.
The distance from Playa Dorada to Cabarete is about 45 min with car.
From both places you can reach Ocean World, excursions, Fun City Go carts, Puerto Plata.
Excursions the kids would like could be the mentioned Ocean world, a day on a catamaran, jungle safari, the waterfalls etc.
www.oceanworld.net
www.playadorada.com.do
www.activecabarete.com
www.caribbeanoceanadventures.com
www.playadoradagolf.com