I am looking for a place in Puerto Morales (but open for suggestions). I will be with my 2 kids (3 and 5) and do NOT want to stay in a resort but more cabana/palapa style place on or near the beach. Thanks for any help.
On or near the beach....
stayed with Sandra Dayton several years ago when she was living closer on the beach. she told me that she was planning to move 2 miles away from the beach and it appears from this web site that she has done so and is now renting rooms in her "jungle retreat" house. She is a very interesting lady with loads of information about the Mayan traditions, especially healing and cooking herbs.
May not be exactly what you are looking for, but it seems that kids would be fascinated with the wildlife and jungle setting and the price is very reasonable.
Also you might check out this web site for the Alma Libre book Store in Puerto Morelos on the (small) main square. Nice folks, Puerto information and the site has links to houses/cabanas for rent, ranging from 500 USD per week on up.
Links:
Mayaecho Jungle Lodge (Sandra Dayton)
Alma Libre bookstore in Puerto

We found a nice place in Puerto Morelos.... we stayed there in 2004. Hotel was named Ojo De Aqua, right on the beach. Staff spoke english and helped with any itinerary or tour we asked about. It was a very short walk to town center either by walking via the beach or by street. Nice town, quiet, safe. We enjoyed it there....