Hi, Pebbles ... sounds like you have some idea already on what caravanning's about ... you can have a fabulous time with the kids and enjoying things with them, or you can let them run riot. Your neighbours in the next caravan will have the same choice with their kids too
You asked ... way back ... "has anyone ever been there". Not to stay, but I do remember visiting a holliday park on that coastline for a day while staying a few miles away and it might well have been Woolacombe. Nice sandy beach, not entirely pretty with the caravans and the rest there. I also recall a leisure pool, wave machine and all the things that went with it ... indoors and good fun if the kids are into that. Do ensure you take warm clothes (oh - wasn't that another thread?) and perhaps a couple of old-fashioned games to play if you get rained in for a while and perhaps look to visiting some other local places rather than staying in camp all the time. Visits I would make if in the area?
Lynmouth and Lynton
Ilfracombe and perhaps a day trip out to Lundy
Combe Martin (I think there's a themed park there as I recall)
Exmoor, Doon valley and the land of Lorna Doone
Minehead and the steam railway
I've not got hours to research all of these, but Google should turn up more for you!
For more of a town, you're not too far from Barnstaple which (I think, but don't quote me) is a cut above a standard "just another" town for specialist and interesting shops.