It would be perfect for every one of you. You have everything within a ten minute walk. Your Mother in law has the peace and quiet which you get in Ovacik (and the most stunning of scenery), there are plenty of family bars and restaurants in Ovacik, and a water park with a toddler area for the 2 year old. There are numerous hotels with slides for the kids, and Hisaronu, a 10 - 20 minute walk away (depending on where you are situated) is pedestrianised of an evening, so perfectly safe for wandering around with the little one. The beaches at the back of the lagoon in Olu are shallow and warm, and have play area for the children. There are shops galore in Olu and Hisaronu and you are a twenty minute dolmus ride away from Fethiye, for more shops, restaurants and harbour. We chose Ovacik as we are a family with two young children, and it suits our every need. (oh, and if you like fairgrounds, there is a small fair in the centre of Hisaronu) Hope this is of some help to you