As a Pro musician and dealing with all kinds of people and scenarios in your audiences is part of the business.. personally reading your post instead of getting annoyed I would of turned it into a "positive moment" especially when Kids are involved. I would of probably said "hey let's do something for the kids!!!...It's Hokey Pokey Time" common Mommy you can do it too!!! or maybe "Hey I see some Chickens out there let's do the Chicken Dance"...
or maybe play "HANDS UP" for them whatever it takes to calm the situation. This way everyone is happy. It's an audiences prerogative to listen attentively to you or not after all it's not a Carnegie Hall Concert. I have adapted to the weirdest scenarios in my 50 yrs on stage from streakers, naked women jumping on stage, bridal party people hanging from the chandeliers, bride & groom jump into the pool on a Conga Line, fights, Chinese acrobats on trampolines, whatever happens I don't care I'm there to ENTERTAIN and have fun and will continue to do so till I drop. Not performing will never even come into my mind music is a gift that my parents gave me and I am proud to be able to do it for a living and share my gift with everyone in my audiences.....

Cheer up !

Play music!!