I was in Obertauern for a week in February 2006 with my family (children aged 7 and 10). The snow quality was very good, the lift service mostly efficient with short lines. It's relatively high altitude for the area and the scenery on a clear day is very good. The skiing is predominantly for intermediates - some but not much real challenge. The town is a strip with plenty of lodging and restaurants, but mostly built within the last twenty to thirty years. Stores and restaurants in town are closed during daytime skiing hours and open only toward end of day. Since the strip goes through the middle of the valley, most hotels have easy access to the slopes.
Overall, it was good for the kids, and the nightlife was fine, but if you are looking for a 'fairy tale' romantic small Alpine village skiing experience, this is not it - go to Innsbruck or St. Anton. Salzburg is just over an hour drive and is worth visiting.