This was a good place to stay with 3 adults and 2 kids. We had our 1yo in the provided pack n' play in the master bath and our 3yo in the master bedroom on the floor. They got the prime sleeping real estate but was nice to have them tucked away so we wouldn't wake them after bedtime. The loft was a bit warmer than the master bedroom, but the mattresses are comfortable and we all slept great.
Our 3-year-old is pretty good with stairs, but you may want to request a baby gate if you have any kids that can't confidently handle stairs. Since we had the small children we only walked to Lei Lei's, but wouldn't be unreasonable to walk to the resort/beach though there was always plenty of parking there too. Lei Lei's was ok, but highly recommend Haleiwa Beach House!!