All of this is spot on.

I’ll add: Hearst castle near San Simeon. San Luis Obispo is a good place to chill and eat, though it may not be perfect for kids. The nearby beaches may be.

I’ll note: driving UP the coast is how all the songs and stories go. Driving down is better - you’re closer to the views and the ocean. Not a big deal - just position yourself for turnouts for vistas and beaches and there’s not much lost by the difference.

Edit: also Santa Cruz boardwalk is touristy, but good for kids to have fun and get a break.