Overall the house is perfectly appropriate with kids, well located, in perfect, clean condition, and with responsive, helpful and friendly hosts. We would stay there again with no hesitation.
We stayed there for 4 days with two kids (3.5 and 7) to visit the various waterfalls, botanical garden, Kilauea volcano, Punalu'u black sand beach, and of course Hilo's Farmer's Market. The house is in a quiet residential neighborhood, 8-10mins drive from a large commercial area (Safeway, Walmart, restaurants, gas, etc) and 10mins from Hilo's waterfront and downtown.
The house is well thought out, very practical, comfortable, and nicely decorated. There is no A/C, which turns out to be rare, but the fans in every room actually surprisingly made us feel very comfortable and we had no problems sleeping at night. There are also several small things that just make your life easier away from home, such as a phone charging station in the kitchen, shampoo and soap are provided, some outdoors equipment is available (we took the large cooler with us every day), etc.
As for the frogs, yes they are loud, as almost everywhere on the island it seems, but the windows in this house have double isolation and make the frogs a small distant noise only. Note though that despite this we actually ended up sleeping with all windows open and the frog "melody" didn't bother us or the kids at all in the end.
Finally the hosts were very responsive trough the airbnb app, very friendly and welcoming with us and our kids (thanks for the few welcome surprises!), and very helpful to suggest places we could go visit and beaches to enjoy with kids. Thanks Keone and Yonnell!