We just took my two year old son to Door County about a month ago and he loved it. He really enjoyed the boats, water, Cana Island light house and the parks. Granted you won't be able to enjoy all the little shops with a young toddler, but you can still enjoy Door County with a two year old. We also took him to the Farm, a petting farm and he enjoyed that. There is plenty to do in Door County for young children.

I think what you've heard about the Dells is all true: it is a bit cheesy (at least some of it), but also lots of fun, especially for kids. Imagine a town where everywhere you look is go cart tracks, mini-golf, water parks, candy stores, and all sorts of attractions. Pretty much a kid heaven:-). I think you'd be hard pressed to find someone under the age of 18 that wouldn't enjoy it.

For places to stay, I would recommend the Great Wolf Lodge. They have several room types available that have separate sleeping areas for kids. The cabin suite and bear den both look really cute ("themed" kid sleeping areas). The waterpark at Great Wolf is really nice; it's all close together. They also had a few areas that are JUST for toddlers, which is nice. Plus, every night they have a story time in the lobby for little ones.

The Dells is a great mini vacation, as there is something enjoyable for everyone! If you haven't gone I'd recommend going at least once to experience for yourself! When I go, personally, I always stay at the Black Hawk Motel. It is not a water park hotel, but does have a pool/park area for young children and is very cozy. I love the atmosphere, plus it is just outside the strip so lots to do with in walking distance, but still quiet. The Black Hawk does have joining rooms, and gives lots of coupons. I know you arent on a budget but saving a lil $ never hurt anyone. The beds are AMAZING!! As for water parks, I like Noah' Arc I never liked staying at the water park hotels, personally. Too loud and too many parents not watching their children.

If you want a separate bedroom for the child to sleep, you could look at Kalahari and Great Wolf, These are not adjoining rooms, but the more secure "room in a room" idea. The idea of leaving a two-year-old in a room with its own door to the outside makes me nervous.

Kalahari just re-did the kids area in the indoor waterpark to make it more parent-friendly.

Oh, and the Dells is very tacky. A different tacky than Door County. Think of the Dells as a carnival midway and you get the idea.

Noah's Ark is the best waterpark overall. In my opinion it's best to enjoy this in the summer, over waterpark hotels. Waterpark hotels are nice if you can afford both experiences and can enjoy them. Otherwise they're a treat in the winter months here in WI (except the outdoor areas which of course are closed).

Wisconsin Deer Park is fun for all ages.

Aloha for on the water stay: http://www.alohabeachresort.com/

smaller nice places that rate well: www.indiantrailmotel.com

www.blackhawkmotel.com

Polynesian has great mature outdoor grounds to enjoy and is a suitable smaller scale waterpark resort:

http://www.dellspolynesian.com/

A little bigger and great for young ones is Great Wolf:

http://www.greatwolf.com/dells/waterpark

http://wisdeerpark.com/

perfect for young ones is the Riverside and Great Northern Railway:

http://www.randgn.com/

I did a lot of research on taking toddlers to Dells and Great Wolf Lodge seems to be the no 1 resort parents recommend. Their water park is indoor and designed for little ones. They also seem to have tons of other activities. You can check out their website.

Though most people recommend Noah's Arch, we took out about three year old and 15 month old to Mt Columbus and have lots of fun. My other mom friend also said she prefers Mt for family and Noah's for adults. Check out my trip report-- "family fun in wisconsin dells"

Have fun!