They aren't the easiest to come by, but if you want a smaller dog that will be an absolute doll with kids and be energetic enough to keep up with them, take a look at Miniature Australian Shepherds. My friend Heather breeds these dogs, and they are FANTASTIC! I have never seen her anywhere with less than three of them shadowing her.
The last time I saw her she had a litter of pups that were ready to be adopted, including one absolutely angelic red merle female named April. I know she has at least one pet-quality boy available right now as well, and my favorite of her dogs (Emily) is expecting next month.
Take a look at her webpage, she's got pictures and info an' stuff. ^_^
http://www.heatherlyaussies.com/
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