I rode the tramway with my family (wife, kids and parents). The trip out is a pleasant and quick ride from downtown Albuquerque, and the views during the ride and at the top are stunning. My parents are a bit queasy when it comes to heights, but they found the ride up and down to be very smooth and they were fine with the trip.
The "drivers" are really tour guides, they point out some interesting and amusing sights along the way that added to the experience. The whole trip takes about 20 minutes (one way). We were there in March, it was definitely chilly at the peak so I would make sure you bring warm clothes for your time at the top.
We enjoyed walking around the top and seeing the views, there are also some trails you can hike if you have the time and desire.
There are several family friendly things to do in Albuquerque (several museums, Old Town), but this is one that gets you outside and that gives you a nice perspective on the topography in and around Albuquerque.