While some of my fellow posters are correct about the roominess of a 197 vs. some of the other options, I still think given your situation the 197 merits serious consideration. With a family as young as yours a 197 will still be fine for a few years. The $10k you save now will mean a lot down the road when you might want to upgrade.
Looking at it from another perspective, having the experience of owning and skiing behind a 197 is worth its weight in gold. It is a purist's ski boat with only a handful of equals. It really does spoil you for anything else in terms of wake and handling and makes you truly appreciate what a great heritage and foundation the whole MC line is based on.
2005 X2, Viper Red, MCX, OJ TZ-X5 prop, PPass, rear 750 sacs, KGB, IBS, Bennett Wake Plate, custom wake shaper
(previous) 2001 X5, 1991 TriStar 190