Ballyvaughan is beautiful, I would strongly recommend it for a relaxing break for adults but there is not a whole lot for kids to do there - the beach is a little bit away from the village and most of the houses, nothing in a car but could be half an hour walk.
If you are considering Co. Clare I would suggest Kilkee - it is a beautiful horseshoe shaped bay perfect for kids/family. There are lots of pubs, some nice places to eat (nothing Michelin starred now!!!), Tesco and Aldi in Kilrush 15 mins drive away, arcades, pitch and putt, golf and it is the best beach for families - great for building sand castles and playing soccer/rounders/squash. There is also boat trips/diving/surfing available.
My favorite part is the great swimming on the beach, at The Pollock Holes (natural rock baths), Byrnes Cove (sheltered cove further out the bay - used to be reserved for men only) and at the diving boards.
My family have been going for the last 50plus years - last year there was 18 of us in three houses. This year is the first time I will be getting my own house for my "own" brand-new family so its a bit of a landmark!
Word of warning. It gets very busy on bank holiday weekends and those nights can get a bit rough in the town - it is Ireland after all - but we always go for the week starting on the August bank holiday and we just avoid the pubs until the Mon/Tue night - can't afford to hit the pub every night anyway!!!!
Let me know if you want more info? Oh and Kilkee was good enough for Charlotte Bronte and Richard Harris...!