We used to go to this place when it was literally a smelly fish market. We re-visited this summer and were surprised to see some renovations. You can still see all the fresh fish in the glass cases, but the smell and grime were gone. You can't go wrong with all the fresh menu choices: fried calamari, fish tacos... chicken fingers are offered for non-fish-eaters. Dining is outside on the patio or upper deck with views of the harbor.
When I'm craving a delicious piece of fish and have no babysitter, this is where my family heads for dinner. The fish is fresh and delicious. The atmosphere is kid-friendly (loud enough that noisy children are accepted). The service is accommodating and pleasant. There are kids' menus with crayons, and when they tire of that, take them for a walk to watch the chefs grilling fish on a huge spinning grill over a blazing fire (behind glass, mind you).
This place strikes a nice balance between what parents want (a nice relaxing dinner with maybe a glass or wine or two) and what kids need (a stimulating environment where kids are welcomed). Plus, for seafood in California, the pricing is quite reasonable.