We were in Egypt over the holidays, i Sharm ElSheihk and had a great time.
Warm weather and water and plenty for everyone to do. Exchange rate is good too.
We stayed at the Maritine Jolie Ville, on the beach in Sharm. They have a day care that was staffed staffed with 3 adults (for only 6 children) and at least one employee was English. We don't have children but it looked pretty good. There is a kiddie pool and most of the restaurants had kids menus like we are used to and / or the kids ate for free.
The beach is safe, very calm. The pool area is huge and there is an area for kids.