Despite its short length, this is an amazing hike. Now is the time to go - the wild flowers are out and the madrona trees are flowering too. I had no idea that madronas even did that, but it's beautiful. There are frequent views of meadows, water, and islands. There are high vantage points, and there are places where you can get down to the water. We sat by a quiet cove watching 3 orcas playing for at least 30 minutes. There was some kind of big seal or sea lion as well, but we only saw him a couple of times. We saw a couple of herons too. My 3.5 year old hiked the entire thing and was amazingly well behaved. The twins were happy for most of the trail as well. At the end of the trail there is a playground, but it's a little skewed toward monkey bars, climbing walls, and spinning things. There's also a beach which is great for relaxing, throwing rocks in the water, or watching people use the boat ramp. There are picnic tables, fire pits, and camp sites as well, though the camp sites are surrounded by trees.
A previous poster mentioned that sections of the trail are a little sketchy for young children due to steep drop-offs. This is absolutely true. Most of these sections simply need some hand-holding, but there are a couple of short sections that will make you nervous even with the hand holding. There's a network of trails, though, so you could probably backtrack and avoid them if you wanted.
We downloaded a map ahead of time that had trail numbers on it. This was useful to let us know where the trails generally are, but they're not marked that way when you're actually on the trail. Instead, they're labeled with colored lines. We could often guess where we were, and the trails were bordered by road on one side and water on the other, so it wouldn't be too hard to get un-lost. That said, I was glad that we had plenty of time to wander and explore the various trails that we found.
http://www.cityofanacortes.org/docs/Parks/Wa_Park_Area_Map2.pdf
The trail was generally in good condition. At the very start (going counter clockwise), there was an area that was in serious need of brushing. It was literally a green tunnel, and there were some mildly thorny things. You could avoid it by taking the road if it really bothered you. There was one steep exposed area where the trail was angled toward the cliff a little more than I'd have liked. It probably would have been more concerning in the rain. There was also a section with stinging nettles. Not a big deal for me, as I was wearing pants. My daughter learned the perils of swatting at random leaves, though, and my wife brushed up against some as well.