Considering the kids are going, definitely Canada's Wonderland. Toronto Island is good as well for a nice day out (take the ferry at Harbourfront). As for the HHOF, if you're only going to be here for 2 days, don't bother. To me, it's very very ho-hum. There are some nice parks and stuff on the western part of the city. Contrary to a few others, I actually like Niagara Falls now. Sure it's very touristy, but it's a nice place to walk along and admire. Some trashy places but if you stick to the core you'll be fine.
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