Not Morocco, but next door to Tunisia. I believe that the culture and environment is very similar. Tunisia is a moderate Muslim society.
My kids are 7 and 4 and we absolutely loved it. Really friendly people, great value for money, has a nice edge to it in the soukes etc eg you have to haggle for everything.
Kids and women are safe. They have strong ethics regarding bad behaviour, for example if a woman is even approached inappropriately, strangers in the street will berrate (sp?) and shame the offender very vocally and defend the woman.
Food was great and the best place we ate was in a narrow back street where the place looked like a lock-up garage and only had 5 tables, the owner was unbelieveably welcoming and cooked everything fresh – 6 people, 2 courses and drinks £23 and no dodgy stomach!
They love kids and it's common for them to walk past your kids and do things like pinch their cheeks gently and even sometimes they might get a kiss from the old ladies with no teeth. We found this all a little odd for the first couple of days, but they don't mean harm and it's just their way of expressing delight at small children.
Loads to see and do with a real sense of history and culture, plus great weather and lovely beaches.
If Morocco is anything like Tunisia, I would highly reccommend it, probably the best family holiday that we have ever had.