Yeah I would say so. It's not a dangerous town and the crime rates are very manageable. There may be a little bit of traffic coming through on Route 9G, but most of the traffic would probably be on Route 9 further east, so I think it's very reasonable most of the time.
You've also got places for the kids to play away from the main streets, such as Tivoli Park. Lots of homes here have decent backyards as well, so there's plenty of room for them to move around. I wouldn't think there's a tremendous risk of crime visiting upon them but as always, exercise good judgment with your kids and where they go.