Yes, we alternate a mom/dad couple who takes the kids for that time, and we let them determine what the activity will be. I like to do crafts with them, another couple does Bible story and discussion, another couple just lets them play in the back yard or playroom. We try to keep it hubby/wife team because that way they are focused on the kids and not on catching up with each other (as we are prone to do when we haven’t seen each other for a week). We wanted our home church to feel like a family, or extended family, and I think this helps keep it fun for the kids while they are still very much a part of the church.
Also, we adults do other things during the week to stay in touch, so that the group meeting doesn’t stretch on and on. We do a conference call (really should upgrade that to Skype) and have a men’s only group and a ladies only group that meets throughout the week. We found that when we are discussing the more adult issues of our lives this way (and praying through them) we are more connected, and can focus on worship, the word, and fellowship in our home meetings. Hope that helps!