I'd definitely recommend Newport. I've been vacationing there since childhood and my husband and I return with our three boys regularly. Our boys are now ages 4 to 12, but we've taken them to Newport as young as 6 months old. The Wedge is at the very tip of the Newport peninsula and we only go there to watch the surfers - not to get in the water with kids.
Because Newport is a peninsula, it has two sides - the calm, quiet waters of the bay side and the waves on the ocean side. Since childhood, I've been boogie boarding in the waves on the ocean side and swimming in the bay. While Huntington beaches are situated between the ocean and a busy street, Newport beaches are situated between the ocean and the sidewalk or the bay and a quiet residential street. I've been to Huntington several times and I'm far more comfortable at Newport with kids. If you park near 15th Street in Newport, you'll have relatively clean public restrooms, the Stuft Surfer for burgers or snacks, the 15th Street Surf Shop for rentals and Fry's Market for sunscreen, sand toys, snacks, etc. - all right there! And the Newport Elementary School playground is right there at 13th Street on the beach. Perfect for kids! If you prefer the quiet, calm bay side, visit the public beach at 10th street on the bay - it doesn't get much more calm than the Newport Harbor!
Then add the Balboa Fun Zone - arcades, rides, Ruby's restaurant on the pier. And then throw in the ferry ride to Balboa Island from the fun zone - great views of the harbor, followed by a walk along the bay to Marine Avenue on the island. Once on Marine Avenue, our kids love the toy store, the candy store and the frozen bananas and ice cream at Dad's. And for dinner, there's the Crab Cooker near the Newport Pier. Great seafood, but very casual and highly kid-friendly!
For all these reasons, I highly recommend Newport!