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Where to stay in Marrakesh, Morocco for multigenerational family of 13 & tips on activities

Hello, we are a multigenerational family of 13- 8 adults & 4 children between 6-11 & one 18 month old. We are looking to rent a riad but wanted to know the pros & cons of staying right in the medina or if it was better to stay elsewhere. Also, what sort of activities are good to do with the entire family? I read about a show called Chez Ali but it seems a bit touristy which is fine but we are only in Marrakesh for 3 days so we wanted to optimize our time. Thank you!

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