My wife and I toured Mallorca for two weeks in January. We don't have children but we drove all over the island in a hire car (1057 miles) and we visited most areas.
How old are the children? The most child friendly areas appeared to be the resorts just east of Palma on Palma Bay - Can Pastilla and S'Arenal. We remember a dinosaur park there for example and lots of other things for families and children.
We stayed in Santa Ponsa and that's a nice resort with a good beach and shallow bay. Magalluf and Palma Nova are just up the road and there are many family attractions there such as the water park. That area is quite tacky though and it's full of British and Irish pubs, bars, clubs and fish and chips. We visited Magalluf once just to oggle at the tat and to savour the fact we could drive away! Some people love that though and they would be happy there. The resorts in the north such as Can Picafort and Alcudia also have good beaches and other child facilities.
Anyway - what's wrong with the Germans? They're certainly better than what's happening in many parts of the UK. We did see many Germans along Palma Bay and in Palma as well as in the resorts on the east coast but they are no problem. We don't sit on beaches so we haven't experienced any 'towels on sunloungers' squabbles if those scenarios do actually exist.
Best thing would be to get a good guide book as they list all child friendly places.
Have a good time.