Beaches: Pacific coast has nice beaches from Punta Chame through to the large resorts in Farallon...
For snorkeling though you need to go to the Caribbean side.
You might want to look at doing a triangle: Panama City and nearby for a few days - canal, beaches, etc then fly to David and visit the highlands - Boquete or Cerro Punta - more activities in Boquete, more laid back on the Cerro Punta side... then back to David to fly to Bocas del Toro - in town a bit more life or one of the other islands more laid back to somewhere like Al Natural where it's totally laid back - some decent beaches but not right in Bocas Town... Then fly back to Panama City for shopping etc...
Another option would be to include Isla Contadora - near where they filmed the Survivor series... There's a couple of nice small places to stay - good beaches, snorkeling is decent in places - not a lot happening during the week so good for laying low...
The city is packed with activities, from shopping (markets, oriental stores, malls, handcrafts, electronics, jewelry, duty free), to historical sights, the canal, rainforest (yes, this is the only city with a tropical rainforest within the city limits, Parque Natural Metropolitano).
A must when you are traveling with kids is to visit Amador and rent the bicycles (fit for 4 persons) and go down the Amador Causeway. The Summit Gardens towards Gamboa are also worth a visit and taking the train from Panama Colon is also a fun trip for kids.
This information based on forum thread:
http://www.tripadvisor.com/ShowTopic-...
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