I think everyone is in the same place mentally - really want to have summer holidays in the sun to look forward to and / or take a break after a looong stay at home, but equally, don't want to take the risk / don't know if it will be allowed.
If it's any consolation, we have had 4 holidays /mini breaks cancelled due to coronavirus, and we got all our money back (sometimes in the form of vouchers). Also, airlines are extremely flexible at the moment on changing your bookings - e.g. with easyjet you can change your dates / destination multiple times without paying any fees , up to 2 hours before departure. Therefore, I am not doing anything about the flights we already have for summer, until nearer to the date, when I know what and when I want to change them to (e.g. easyjet have even released spring 2021 flights so you could change them for then).
So - my advice would be hold fire for a while, it's unlikely there will be issues with availability for flights this summer even if you book last minute. If you have summer plans, hold tight, don't do anything yet - you might be able to go yet, and if not, if it's the airline that cancels / there is advice against travelling, the cancellation terms will be better than if you cancel yourself ahead of time.
As for your kids, depending on ages - mine are quite young so they don't have a concept of what's great vs what's mediocre - my daughter (6) still keeps raving about the great beach in the UK (Boscombe) and asks if we can go back there as opposed to some of the other exotic destinations we have been to. As a minimum, I expect to be able to go on day trips to beaches or other countryside destinations in the UK. If your children are older, you might be able to explain to them the context of coronavirus, and therefore we can't make any plans yet.
Best of luck!