I havent upgraded to the Hero 3 yet. I know very little about them and the issues they have been having.
The Gopro's I use for my videos are the GoPro HD Hero's. I shoot everything in 720p @ 60fps. The major reason I would upgrade to the Hero3+ is for the ability to shoot at 1080p @ 60fps. The reason I shoot at 60fps is so if I just happen to catch a shot that deserves to be put into slow motion, it comes out smooth and not choppy. Yes, I sacrifice the HD quality, but lets be real here - you guys are watching these on your cell phones, tablets and computer screens, not in a iMAX theater.
I wouldn't recommend a GoPro for family pictures/video. They are mostly designed for action sports. They dont have a way to view what your shooting or review what you have shot. Yes, they offer a LCD backpack for this, but its another $80....and its worthless when shooting in daylight. Its very hard to see, even more if its in the waterproof case.