We stopped in Corfu on a cruise and were thoroughly unimpressed with the place. The people were great, but they were on ALL the other Greek islands too. We also went to Crete, Santorini, and Mykonos. It was only in Athens that things seemed more big city/ unfriendly in nature.
Personally Corfu’s main attraction seemed to be the Pink Palace as was already noted above, which is a huge party destination for younger Brits/Canadians and the occasional American in the know. As such, I felt most of the shops and services catered to that crowd. I wouldn’t recommend it for a toddler any more than I would recommend Tijuana, Mexico.