You're definitely NOT crazy. I have many customers take small children out all the time! And, single handing the 16 in light wind is no problem. It can be a chore to rig solo, but there are ways around it. I think I have a better option for you though...
I know what boat I'm thinking of that would be perfect for you and your small children. But, instead of being a forum hog, I want to see what other people say. I'll get back to you after a few others give input.
Come on guys, this is the 90% of cat sailors out there. What do you think? <img src="http://www.catsailor.com/forums/images/graemlins/laugh.gif" alt="" />