Castle Crashers is one of the best 4 player co-op games around
TMNT 1989 Arcade Game.
X-Men Arcade.
NFL Blitz, if you all are football fans. (only 2 player co-op.)
Warhammer 40K Kill Team (Excellent twin stick shooter)
Dungeon Defenders is amazing AND has 4 player local coop in the demo to see if you all like it. It can be hard however to read the stats on some of the loot you pick up while in splitscreen.
Lord of the Rings: War in the North. This game has experienced a lot of glitches since being released, however after the patch released recently I haven't experienced anything troublesome. This is an excellent local co-op game. Only issue I have with it is the fact that what you say in the narrative never really matters.
Crash of the Titans. (I love me some Crash Bandicoot)
ANY of the Dynasty Warriors games. Well except Gundam. That one gets stale quickly.
Either of the Earth Defense Force games. These are technically shooters but as long as the difficulty isn't high up it doesn't really matter, just crazy co-op fun.
Any of the lego games.
MARVEL ULTIMATE ALLIANCE! This is probably the best game on the list given your criteria. It has excellent 4 player local, with a huge cast of characters to play around with. Make sure to get the gold edition if at all possible. If you all like it there's also the sequel, but I haven't played that one so I can't comment on it.
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