We are just back from a week in Obergurgl. We brought our kids for the first time (aged 2 and 4). The kids ski school was excellent, with the facility to book your child in for lunch giving us 5.5 hours to ski. The kindergarden in our hotel, the Bellevue was also good and our 2 year old settled in well. The snow was good, they look after the pistes well and there was quite a lot of powder - much more than I was expecting.
Our hotel was excellent from quality of food (not to mention the quantity), to the wonderful staff, lovely bedrooms, ski room with boot warmers and great leisure facilities. We will be heading back in 2008.