Shikamooha ro bebin... sightseeing suggestions, restaurants!!! LOL
As far as restaurants, you have a couple of very good suggestions... Kabob Torsh from Shomal is definitely something you don't get in many or any Persian restaurants and very YUMMY. And Pomegranate is a very nice place if you're looking for some home made food with a nice twist that you won't find elsewhere - all in a small cozy setting.
Canada's Wonderland would definitely be my top suggestion for a family visit. It's the largest amusement park in Canada and has the 2nd largest number of roller coasters anywhere in the world. It also has a water park which is great for kids in the summer time. The kids will love it there and if you have someone older to take care of them, you and the wife will definitely enjoy some of the wilder rides.
CN Tower is definitely another unique Toronto experience which shouldn't be missed. You can do that with the Harbour Front and the Toronto Island all in one day or add Ontario Place to the itinerary for two fun days, particularly if you add a picnic or beach @ the Toronto Island to the itinerary.
The Ontario Science centre is also another nice place for kids for a 3-4 hour visit as are the Playdium in Mississauga and Dave & Busters in Vaughan. The Royal Ontario Museum also has occasional fun and educational events for the little ones during the summers which makes it a potential candidate.
As far as Niagara Falls, my suggestion would be to spend only one day there and stay at Niagara-on-the-Lake for the 2nd day. It's beautiful there and definitely an Ontario gem. You can do winery tours and there's a GREAT family oriented beach with shallow warm waters at Port Delhousie nearby with Ontario's oldest Carousel still in operation charging only a nickel for a ride!!! Overall, it's a great little town to visit. It's also worth checking out a nice play at the Shaw Festival (Niagara-on-the-lake) if you guys are into that stuff and for after the little ones are in bed. On the drive back from there, The Lake House (in Jordan) is a great place to eat and unwind with a gorgeous patio overlooking the lake.
Speaking of beaches, Wassaga Beach is the longest fresh water beach in the world and for that reason worth mentioning, although it's crazy busy in the summer time and unless you go early in the morning, it's a bit hectic. It's about an hour and half away.
And of course no tourist suggestion for Ontario is complete without mentioning Algonquin Park. If you guys are into camping, it is definitely one of the must see places in Ontario, if not Canada. They have cabins there, regular camp sites and if you really want to rough it out in nature for a memorable experience for the little ones, interior camping where you have to canoe to your camp site and the closest neighbouring site is about a kilometer away!!!
I think that should keep you guys busy for a week or two!