J.F.
I am going to Duluth this weekend and had thought about the Edgewater but we couldn't get a suite for both Friday and Sat night. After reading some of the posts here I am glad we aren't staying there.
We will be staying at the holiday inn and suites downtown and I can let you know how it is after this weekend. We will be staying in a Kid Suite. We got a great deal ...stay 1 night get 1 night free. It doesn't have a waterpark but like the other posts said there is so much to do in Duluth. We plan on taking the kids (5 and 3) on one of the shorter train rides (1.5 hrs), checkout the children's museum, and maybe the zoo.
If you want to take the kids to a waterpark I would just make a trip to the Wisconsin Dells. It is a little farther but I have heard good things about the parks there. I don't think the hotels there are that much more expensive than the Edgewater and I think they offer a lot more.
5/26/09
Just returned from Duluth and had a great time. The Holiday Inn was great! The kids suite was perfect and had two separate rooms with the kids room having a bunk bed, tv, VCR, etc. I would definitely stay there again. The hotel staff was very helpful and offered numerous times to drive us somewhere if we needed a ride, etc. since most of the time we were walking places. I have to admit that it was pretty nice that we could get around most of downtown in the skyway system because it was pretty cold in the morning and after dinner.