I've heard the Florida band Rabbit! described half-seriously as kids' music, and even they tag themselves in part as "children's music." I suppose that might be a bit much, as a lot of their songs are twee love songs that probably won't hold the kids' interest, at least from a subject-matter perspective. (The hyper love songs might be a little more up the kids' alley.) But they're not entirely unfamiliar from the kids' music world -- for example, they contributed five songs to the Do Fun Stuff kids' compilation.
Their latest video, for "Magic" off their 2010 album Connect the Dots, is a pretty cool kids' song and totally cute. If would very much fit in, say, a Yo Gabba Gabba! episode.
Rabbit! - "Magic" [YouTube]
Stream the album and their recent EP after the jump...