The images above are of three artificial grass installations in Hampshire and Dorset showing the installation of dog friendly play areas establish a lawn speficifically for their pets. Where once there was natural grass that, in in one of the cases,the dog was particularly fond of digging up the lawn, now there is an artificial grass substitute that the dogs all seem happy to accept.
This is a common problem of dogs digging in the garden as it is natural for them to do so. They are effectively looking for food. Having artificial grass eliminates the "ground effect" and although not a guarantee to stopping your dog digging up the rest of the garden it seems to be effective with synthetic grass.
The quality and presentation of the higher end materials makes them suitable for presentational area of the garden as they offer a near zero maintenance option that will dominate the first impressions that a visitor sees. For further information on artificial grass products that we use and install see here. For further reading this link is informative at the Humane Society.
On the children aspect the artificial turf can be easily cleaned and even disinfected if required and new lawn will provide a clean and safe environment for children to play on and will not suffer from the patchy areas that rough garden play creates.