I have two kids as well, and we fit in comfort in my E92, my wife with the little one in the back, myself with the older one in front, and the baby troller fit nicely in the trunk.
I couldn't believe how spacious is the E92.
My older one is old enough to legally sit in the front seat, just saying...
11 Audi RS5 Misano Red
08 E92 M3 Jerez Black 6MT--sold
08 E92 335i 6MT traded in for M3