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Ideas for 3-generation family vacation

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My husband and I are planning a vacation for us, our kids, and our five grandchildren (12 of us in all) in June 2014. At that time, the grandkids will range in age from 2-16. We want someplace near or on the ocean. We've thought about the Caribbean or Mexico, or maybe a cruise in that area. If we stay on land, what family-friendly destinations/resorts offer things to do for the kids but will also satisfy active adults? Would you suggest all-inclusive (we don't drink)? If we go on a cruise, which cruise lines would you recommend? This is the first time we will travel together, so nothing too stress-inducing or complicated, please! Any ideas for a memorable and fun week together would be appreciated.

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