Re: entertaining kids in line at Disney?
As others have said, fast pass as much as possible. Also, research "rider swap" for the 2 year old. I'm probably not explaining it well, but for our family of 5, we were able to get 4 fast passes for a ride (the 2 yr. old doesn't have a ticket and doesn't get a fast pass). On any rides that the 2 yr. old isn't tall enough to ride, we would all approach the fast pass return line when our window opened up. I would ride with the older 2 while the attendant give my husband a pass to return any time that day to get up to 4 people through the fast pass line. He would watch the 2 yr. old explore while we did the ride. We would collect rider swap passes throughout the morning, then, when the 2 yr. old would nap in the stroller later in the day, he would take the older two to "walk on" to 4-5 rides so he could experience them and the kids got an extra trip on some great rides.
We used the few lines we had to wait long in as a time to snack. We were so busy throughout the day, that the kids did amazing in lines with a bottle of water and a bag of Chex Mix (ext.) to share.
Have a great time!