in the case or out to play?

I guess I am also lucky where I live - Colorado = zero humidity.

I would consider you unlucky to have zero humidity...that's awful for guitars.

I have heard that the dry air was bad for guitars. I have been here for 3 years with no problems to report, although our HVAC has a humidifier on it that keeps the house at a constant humidity level.

My kids absolutely see me with my guitars. The office has glass french doors and I often bring them in to do sing alongs, etc. And, they can find me, every evening, plopped on the couch watching tv while strumming a guitar. The point of having a separate room is that they know NOT to go in and disturb the equipment, even if I am not there.

Another suggestion that I haven't seen yet is what I did, purchase a less-expensive "practice" guitar. I leave this out on the stand (I've got 10 minutes here and there and can play). We don't have the space for a child-free room so I've taught him it's not to be abused but he's welcome to strum / pick some strings if he'd like (carefully) and yes this guitar has seen the floor ona couple occasions (damn dog). But again I didn't spend a bunch of $$'s for it and it's worth it having it out and available for those times when I only have a few minutes and don't want to set up the whole rig.

I'm lucky enough to have a separate music room, where I can keep 7 guitars out on stands...

I leave my two acoustics and my electric on stands in my guitar room. (I haven't been blessed with kids). I was told by the owner of the guitar shop when I bought my first guitar, that it was advantageous to have your guitars out of the case, because he argued that the soundwaves from your stereo would have a beneficial effect on the guitar's soundboard--that this process would aid in "aging" the guitar. As an innocent newbie, I took his advice to heart, even though I suspected that his advice sounded like some esoteric old-hippies tale.

I've had the guitars out for about 3 years now, with no problems. If I had kids, I'd probably keep them in the case.
Congrats on the triplets. That is so cool!

Ghost