This is an issue I've given quite a bit of thought to - how much of my personal life to share online and whether or not to include my children in my online life.
I do share photographs of my kids on my site. I worry about their privacy the same way I would if I were sharing excerpts of their diary with my readers.
I don't feel I'm putting them in any danger by sharing what I do. Statistically, we are living in one of the safest periods for children in the history of the world. Bad stuff happens and that makes headlines, but similar horrible bad things have been going on since the dawn of time, internet or no internet.
For now, I know where my kids are at all times and they are safe. Anywhere I take them they are subject to being recorded via video or photograph: stores, parks, dentists office, swimming pool ... I have zero control over any of that and people could be using those images in ways I don't approve of. But chances are, they aren't and even if they were, the chances are almost non-existent that they'd act on it and try to find us.
I fully support parents who don't want their kids' real names or images online. I think it's something the parents should decide. There is no right or wrong answer overall.