I suppose this might be a good time for disclosure. The kids are 3 and 6 1/2. I figure by the time I get the boat finished they'll be 4 and 7 1/2. They canoe already, in the middle, but the 3 y.o. doesn't really paddle. If I'm honest with myself they'll be 5 and 8 1/2, and then we can tow them.
Obviously, (or maybe not) this would only be used on slow, shallow water, but realistically, I might just build a 13-15 footer as a reasonable size that they'd actually be able to use. Although the tandem idea is good too.