In addition to LBP, Ratchet&Clank, and Sly, there are all the Lego games (star wars, batman, indy jones, harry potter, Pirates of the Caribbean), Deblob 2, Mini Ninjas, Maijin and the Forsaken Kingdom, almost all the Move games are family oriented, there's also the music games (Singstar, Guitar Hero, DDR, etc), the trivia games (Buzz, You don't Know Jack), sports and racing games, lots of games based on kid's movies, and there are lots of psn games that are 2d scrollers, etc type games like you find on the Wii.
I definitely don't think the Wii is the only option for people with kids. I personally would rather just have the kid get used to the better tech in the other consoles, but it's a personal choice. As a side note, I know some small kids have problems holding the wiimote – you can buy a special smaller kid-sized wiimote that is better for really young kids. If you really want a Wii due to nostalgia, you might want to hold off a little bit as they are about to release their HD Wii any time now. So you should either wait for the new machine or wait for the price drops on the old Wii (definitely don't pay full price for the Wii, there are lots of sales going on now in anticipation of the future price drop so make sure you get a good deal if $$$ matters to you).
Edited to add: oops can't forget about Katamari since its in my avatar. I know there are other kid friendly games I'm forgetting, you just got to look and you can find plenty of family enteretainment on the PS3.You don't have to feel forced to get a Wii just because you have kids.
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