My wife took our kids (also now 10 and 7) interraailing two years ago for a whole month. I joined them for long weekends along the way. They all absolutely loved it.
Their route/stop offs comprised - Paris, Amsterdam, Cologne, Munich, Salzburg, Vienna, Verona and Lake Como.
I missed the German and Austrian parts, but I can confirm that Verona and, especially, Lake Como were amazing with a family in tow.