As you already know, digital cameras come in all sizes, shapes, colors, and capabilities.
In every category there as one or two that stand out as excellent cameras in that category.
In the category of general family use, the Canon PowerShot has the SD 1200IS.
This little gem of a camera has some very powerful features in spite of its relatively small price tag.

• 10 Megapixel Resolution - a sensor that captures enough detail for prints up to 13 x 19 inches.
  2.
  5" LCD panel with
• 230,000 pixel resolution.
  
• ISO of Auto or 80-1600 (higher resolution is good for taking low-light photos)
• 3x Zoom - 35-105mm
• Image Stabilization
• Video Capture
• Carry in your pocket
• Affordable price of just over $150.
  

It qualifies as family friendly due to the ease of use, video capture capability, and price.
You can take family photos, post pictures on Facebook or your favorite photo sharing site, let your kids use it with confidence that they will be able to take good pictures with it too.
It has a feature known as "Smart Auto".
This is when the camera can detect just the right settings for the scene you are working with.
The Canon PowerShot SD 1200IS comes in a variety of colors that will satisfy even the most color-conscious member of your family.
You can get one in pink,orange, light blue, dark grey, and silver.
If you are looking for a good solid camera for use with family around the house or on vacation, consider the Canon PowerShot Lumix SD 1200IS.