Being a West-Coaster, I'd say the only South that's safe to visit in August is Southern California
You can't go wrong.
I assisted my English boss in planning a trip up with his family (teenage children) along the California Coast, from San Diego to San Francisco, and then including Yosemite National Park. They LOVED it.
I love NE, but in the Autumn.
I love the SW, but in the Spring (my family and I just did a trip around AZ, NM, CO and UT, and it was stunning - but again, before it gets too hot!).
California has everything to offer - from amusement parks, to the most beautiful beaches in the world, to fabulous mountain views, National Parks, and culture. And 99.9% guaranteed good weather.
DO NOT SPEND TIME SEEING 'L.A.' - it's a big city. No big whoop.
And yes, if you have more time, definitely head up to the Pacific Northwest. More gorgeous country to see.
When I was very young my family would take road trips from Southern California up to San Francisco, over to Yosemite and Sequoia... all doable with young children, and plenty of clean, inexpensive places to stay along the way.
As above, if you're going to do something like Yellowstone, then keep it at that.