Cabela's has some pretty good choices. I got my 13-year olds a couple last summer. One was a Traditional II, and the other name escapes me. Pretty nice rods -- moderate action, nicely finished. Got a couple cheapy reels there too. I actually fish the Trad II occasionally and really like it. Both 4-weights, 7-1/2 feet.
I think you're right about sizing down a little for the youngsters. 7-1/2 feet is a little easier to handle. 4-weight is a good choice, depending on what you're doing. If it's panfish & trout that's good, or a 3-weight would be fine too. A 5-weight would work, but it's maybe more that you need.