It would be a cold day in H*** before I'd bring kids to this delapitated, sick, poorly run city for a vacation. New Orleans has got to be one of the worst cities in the United States. There seems to be no management or worthwhile functioning city management.
I did my research completely on this city well before Katrina when we were contemplating a family vacation and quickly came to the conclusion that I would not want my children to experience anything about this city.
There are far more preferable destinations for vacations-with-kids than this decaying city.