We've been carless by choice for over two years now and generally people's reactions consist of 'Oh my god...how DO you do it.' We tote around our two kids (8 and 10) and they don't seem to mind (most of the times). We're instilling quite a bit of 'move slowly' into them at a very young age.
It's actually quite a bit easier to do than people really realize. We walk everywhere, even in the -30C cold Canadian winters. Taxis for grocery trips, buses to get to those further destinations when it's not biking weather.
We also live in a city of 50K so I'm sure that helps out a bit living in a smaller city.