Process, that was a rookie post done right. Thanks for giving us the appropriate information up front!
All that's missing is a picture or two.
Whether you choose to build alcoves for your LCR or use wall mount brackets, you probably ought to concentrate your search on front ported speakers. The HTD Level Twos would be a good example. This is definitely better than in-walls. I think speaker brackets would be preferable to an alcove, though. To get the best sound from your front stage, the speakers' tweeters ought to be pointing directly at the listeners' ear level. Brackets would allow for angling down a bit, so you can mount them higher; whereas a toddler will probably not have much difficulty poking speakers in alcoves at seating level height.
Another initial thought was that a down-firing subwoofer might save you from having to scream at your younglings when they venture too close to the driver. The Outlaw LFM-1 EX would be a good choice. Two would be even better if your budget allows, but you ought to plan to get a receiver capable of individually correcting each -- the Denon AVR-X4000 for example.
Ultimately, these considerations are a feeble substitute for active parenting though. I've got my bookshelfs on speaker stands, and my 2-year-old daughter knows not to run or play near them. When she needs reminded, I gently remind her. But since I'm always there when she is, I don't worry that she'll pull a speaker over.
Before we continue, are you more interested in movie performance or music? Do you have a budget in mind?