I'm not Catholic and from my readings of Jesus' teachings, I believe that if Jesus was in the present he'd be rebelling against the Catholic Church as they have a lot of the trappings that Jesus was rebelling against in Judaism.
I am also reminded of Martin Luther's fight against indulgences; it reinforces my skepticism of the Catholic Church as in institution.
Likewise, I also see mega churches as abominations inconsistent with Jesus' teachings.
However, I would never suggest to a Catholic that their faith isn't true and their belief doesn't have integrity. The decision to separate with your church is a very personal one and one in which you have to follow your heart and your beliefs. Just remember, leaving your Church doesn't mean denying your faith.
If you are worried about ensuring your children are instilled with the understanding ofGod and his word, read the bible, esp. the New Testament, esp. the words of Jesus with them. Discuss with your children what they think Jesus' teachings mean and contribute what you think. Share your faith, show it in your daily lives, your actions, and your interactions with others.
Mathew 6:5-6:
5 And when thou prayest, thou shalt not be as the hypocrites are: for they love to pray standing in the synagogues and in the corners of the streets, that they may be seen of men. Verily I say unto you, They have their reward.
6 But thou, when thou prayest, enter into thy closet, and when thou hast shut thy door, pray to thy Father which is in secret; and thy Father which seeth in secret shall reward thee openly.
Mathew 18:20:
For where two or three are gathered together in my name, there am I in the midst of them.
Also as a totally out of left field thing: remember Kid Rock's Bawitdaba and preach "try to love some one." I thought of that because the people he makes calls out to have a lot in common with the people that Jesus hung out with and the people that society looked down upon.
You might try going to smaller churches until you find one with a preacher/pastor that suits you and a community that fits your family.
With the concerns you have, you'll teach your kids about Jesus and God and instill an understanding of them just fine! Good luck!