The economy of adding a day to your Disney visit versus buying separate one day passes to Busch Gardens will weight heavily in the favor of Animal Kingdom. Although Busch Gardens is an enjoyable visit, I think children your age will appreciate Animal Kingdom more.

I recently discovered this <http://tinyurl.com/2mqweg> article from the L.A. Times where the Arthur Frommer recommends giving the four non-Disney theme parks a chance. He makes a strong argument and it is worth a read!

You asked for a hotel recommendation in Cocoa Beach:

We stayed at the Wakulla Suites in Cocoa Beach in Nov. 2005 for 2 nights after going on a Disney cruise. It is a fairly large motel-type place, with a big pool. We stayed in the building right at the ocean (we didn't have an ocean view). I remember that the rates were very reasonable. We got a huge 2-bedroom apartment with kitchen, so we could really spread out. Not luxurious by any means, but very comfortable.

But for a nice beach experience, I too would recommend the west (gulf) coast over the east (Atlantic) coast.

~rikki