The Stone Village is just perfect place to stay with kids. Not so far from the beach - 10 minutes walk. It's very calm and relaxing - it's hard to leave the hotel because it has pools, farm, nice places to rest and it's soooo green! Food is better than you may expect - just delicious. Bali is a good starting point for trips in Crete - everything is very close: Heraklion and Knossos, Rethymnon, Chania. The beach is sandy and clean.