We've stayed at Paradise Point three times now with our family of 5. It's a perfect destination for kids: they have a number of fantastic pools that are super family-friendly, fish ponds with ducks and massive koi (and they also provide food for the kids at the front desk!), and really gentle beaches that are great for dipping toes, building sand castles and not having to worry about gigantic waves!
We have always stayed at the Bayside Bungalow, which is a separate cottage right on the beach. It has a living room with a small dining table, kitchenette and a separate bedroom with King Size bed and lots of space.
The cons: they really nickel and dime you which can get exhausting, especially after you've spent a few hundred on a room. There is a daily resort fee ($40) daily parking ($40), so you're hit with nearly another $100 in daily rates. When you order room service or at the bar, they also don't make it clear what is a tip vs. service fee (and no one seemed to be able to explain the difference! You obviously want to tip your waitress or bartender, but you don't want to end up paying $20 for a can of beer!)
Overall, it's a destination we keep coming back to. It's super central to a number of attractions in San Diego, and when you don't feel like being a tourist, it's a great place to come back to and relax. Just be prepared for some hidden fees, especially if you're ordering food.