Just got back from OC last week. We've been going for more than a dozen years now with the kids. Beaches are well maintained and lots of good family restaurants on the bay side. Try Mackey's and Fish Tails, but go before 5:30 or you're waiting a bit. For ice cream, Justine's on the north end is the spot. OCM Crabs is the best place for crabs. As mentioned earlier, a side trip to Assateague to see wild horses is a good diversion, or there's a tacky, but good for kids, amusement park called Jolly Rogers, which you can get a pass to ride all afternoon (thankfully my kids have outgrown that). The Boardwalk is nothing special, we've haven't been in a few years and don't miss it.
We're partial to Pino's but have wanted to try Lombardi's...next year for sure.