What a great place Kennebunkport is for a family visit. Our family of 4 (two teen boys) enjoyed our quick visit (one night) and look forward to returning. Did my research on TA. Based on recommendations on the forum, we stayed at Village Cove Inn ($189/night internet special for 2 beds, fridge, microwave). We were pleased with the accommodations and thought this was a decent rate in town. Older motor-lodge resort style but a great location and quick walk to town through a residential neighborhood. Very pleasant.
We had lunch at The Landing (great view, decent food, poor service), drinks at the bar at Federal Jack's (loved it!) and a pizza to go from Atlantic Pizza (loved it!).
The village is wonderful for walking, window shopping, browsing, shopping, etc. Highlight was seeing Laura and Barbara (Jr.) Bush! Highly recommend the drive to Goose Rocks Beach; what a great spot!