I wouldn't recommend a console at all for more than one child, I think some DS Lites if they don't already have them is the way to go.
There aren't many Wii exclusives that 3 kids can actually play together. The New Super Mario Bros, they'll beat it once and never touch it again, Mario Strikers Charged maybe. Single player games like Super Mario Galaxy will have to be played in turns, and they'll tire of those games even more quickly.
If you are going to get a console I don't think the 360/PS3 would be a bad choice over the Wii either, even though they don't seem as kid friendly there's still plenty of multiplatform games that will look and sound better. And games like Rock Band will have better DLC options. Or in the case of the PS3 you have games like Little Big Planet which are more sandbox oriented and will probably provide more replay value than a linear platformer like SMB. And you can't forget about the new motion controllers both companies are developing like Project Natal and the Sony Eye thing, I don't think the Wii is going to be able to keep up with what's around the corner.
Then there's also the price, both the 360 and PS3 have been getting steady price cuts over time while the Wii is still the same price as when it launched. $250 will get you a 60gb 360, or $50 more will get you the new PS3 slim. Factor in the premium you'll have to pay for the slightly more expensive Wiimote/nunchuck combos and the Wii might end up costing you even more. I think anyone who's bought a console for their kids will tell you it'll eventually collect dust regardless of which one you buy, but at least the 360 and PS3 have some sort of media center capabilities. The PS3 of course doubles as a Blu Ray player, the Wii won't even play your DVDs.
But yeah, overtime I think a handheld is gonna get a lot more use than any home console. Kids have plenty of other things to distract them when they're at home. With a DS Lite every car ride is a playing opportunity, every vacation, shopping trip, etc.