Littlebigplanet is great for kids and offers infinite replay value with the levels created online daily.
Rayman Origins is a blast co-op and trains those toddlers thumbs like few games these days.
Sly Collection and Sly Thieves in Time are great kid friendly experiences that I still enjoy as a 20 year old.
Ratchet and Clank Collection, Tools of Destruction, Quest for Booty, and A Crack in Time are all great for kids and hilarious for everyone (my favorite series of all time).
Jak and Daxter: The Precursor Legacy is a great, kid friendly, platformer.