Nafsika is in a great position for all of Arillas. It has the Rainbow, Marvel, Captain's Table right next door, but is only about two minutes from Brouklis, then on past Malibu/Coconut to the sea front in another few minutes. The whole area is child friendly, and I whole heartedly recommend it. I would happily stay there or any of the places around it.
And like riggers says, the growing Arillas darts team is often to be seen socialising in the Rainbow in the afternoon! (They never seem to get much darts practise in with all the natter and chatter going on...)