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Madeira - is it a good choice?

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I am looking to plan a 1 week vacation for mid April. The vacation would be for me, my wife and our 2 year old son. My wife and I have done a substantial amount of traveling before children but this will be our 1st trip outside the United States with our son.

Looking for decent weather
Place that would be appropriate for a small child

My wife and I have traveled enough to feel comfortable traveling to multiple locations within 1 trip but I think with only having 7 days and our son with us.
, 1 location would be the best choice.

I am leaning towards Madeira, but I am open to suggestions and advice.

If you think Madeira would be good choice, please let me know which hotels you would recommend. Ideally I would like to spend 200 euro per night but would be willing to spend more on the right hotel/location.

Thank you in advance,
Tim

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