So, I never did this trip last year, but I want to take them to FAO this year.
Funny thing though, I was googling how to get to FAO from NJ, and this thread came up in the search results!
So I guessing taking the ferry and walking from there is not a good idea.
Would I get ass-raped by chuds if I try to take a taxi to FAO?
Get yourself to a NJ Transit train to Hoboken.
Take PATH into NYC as far north as possible (33rd Street)
Take taxi to Central Park Ice Rink. Skate. Take horse drawn carriage to FAO Schwarz. Shop. Work your way back south to the Jets Shop, Build-A-Bear, Rockerfeller Center, Tree, Radio City Christmas Show. It's a nice, leisurely walk.
Take taxi back to PATH train (33rd or 23rd Street).
PATH to Hoboken.
Hoboken to NJ Transit.
Basically, no driving, no NYC Subway. NJT and PATH are civilized.