Stay in a Ferienwohnung. Don't stay in the big cities. Do some research and decide what areas you'd like to see. Kids get real bored on trains after awhile so find a place where the kids can run around.
BO might be the answer for you. Fluelen might be an idea because it's relatively near everything, on the lake yet it's quiet and has a train station.
Küssnacht am Rigi is also nice and has a train station. It's also on the lake.
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