I'd have a hard time recommending a regular DS model because it is now pretty much obselete. Pokemon Black and White 2 (and apparently 3) will be the last games coming out for it, and BW3's release is a bug mystery right now. The 3DS can play almost every DS game and the one's that it can't play aren't very notable, because I don't know of any outside of Guitar Hero.
If you go with a 3DS, you don't have to worry about tracking down games in the future as much because you'll be able to buy new games when you need to and you can still buy any DS game you'd want in case you see one they might like. Good DS games are going to get harder and harder to find as time goes on because 3DS games are going to be replacing DS games on store shelves. The 3DS is just a good way to future proof your investment, because chances are you'll end up buying them one anyway once they find out that all the new games they want are on the 3DS and not the DS.
One thing I'm surprised that nobody here has mentioned yet is the 3DS eShop. You can find tons of cheap games that are kid friendly the same way that Apple's App Store works. The DSi has an online store as well, but the variety is much smaller (with fairly high pricing for what you're getting), and the entire DSiWare library is also on the 3DS eShop.
The DS Lite (I won't recommend the DSi) does have two advantages over the 3DS though. One is that DS Lites can play Gameboy Advanced games, so that can potentially greatly enhance the amount of games you can play, provided you can find them. The bigger advantage the DS models have is the battery life. The 3DS is rated for 3-5 hours by Nintendo, but I can usually get closer to 8 with the brightness down, 3D off, and Wi-fi off. I can get close to 10 hours playing DS games. The DS Lite can push 18 hours of battery life doing the same thing, and it can do even more playing GBA games.
Basically, I would go with either the 3DS or DS Lite. If you decide against the 3DS, you'll likely end up buying one later because your kids will see new games coming out for the 3DS and not the DS, so if you go with the DS Lite at least you won't have paid a whole lot so the upgrade won't seem like as much of a big deal. If you go with the 3DS, they'll have a system they can play for 5 or more years while still having old and new games.
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