Is Milan a good town for families raising kids?

Yes, I would say so if you're looking primarily for a safe and quiet environment in which to raise your kids. There isn't much crime to speak of up here.

There are some places to take the kids locally if you want to keep them entertained, like the parks and horseback riding centers, but you'll have to do some driving to take them shopping, to the movies, and so forth.

The thing I might think about here is the low population and how spread out it seems to be. If that's what you want for your family then you can surely have it in Milan, but from what I know of it, you probably won't have many kids in town with whom they can interact. There are some of course.