I think two weeks is enough time to see the main sights in NZ, particularly if you're driving. However don't expect to have enough time to do some more out-of-the-way places such as Northland, Stewart Island or the Coromandel Peninsula. Major hiking trails are also out of the question, although it's unlikely that you would plan on these with kids anyway.
I take the following itinary (which I did in two weeks with a rental car a couple of years ago):
NORTH ISLAND
(fly into Auckland)
Auckland (2-3 nights)
Waitomo caves
Rotorua (2 night)
Taupo
Napier (1 night)
Wellington (2-3 nights)
SOUTH ISLAND
Picton (1 night)
Marlborough wine region or Nelson
Greymouth or Hokitika
Franz Josef or Fox Glacier (1 night)
Queenstown (3 nights)
Mt Cook
Akaroa (1 night)
Christchurch (1 nights)
(fly out of Christchurch)
This is rushing things a little. You could save time by travelling down the east coast of the South Island rather than the west and flying out of Dunedin rather than Christchurch. You would miss out on Fox/Franz Josef Glacier, but it would also give you the oppotunity to see Dunedin (which I missed out on).
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