Do it.
Camping and young kids is a great combo. When mine were young we either camped in a variety of big and small tents, static Caravans or cottages/Gites etc. The Camping won hands-down, especially on Eurocamp/Key camps when they were at the right age.
At that time our own towing caravan was not really an option in terms of space (where to keep) and cost.
In my second life with
@Hill Wimp it was clear Tents were not an option, so we bought our little Caravan Mavis (only had a small car), and it was great! But really we needed a bigger car and that wasn't on my plan. Ultimately we went the MOHO now Campervan route.
But Kids love camping, they get to be outdoors, run around and play with other kids etc. and are happy to mix in with the daily chores (until teenagers). As somebody wise said about holidays 'if the kids are happy, the parents are happy'....