I have been a regular guest at the Taj since opening day.
While I sympathize with your situation and agree that it could have been handled more diplomatically there are several reasons the least of which is insurance liability.

If you have spent as much time at the Taj as I you might understand.
I don't think the situation would be quite so bad if children were a bit more "supervised" but ask me, and I will tell you I have seen it all.
People literally camping in the halls, eating meals sitting on the ground in the middle of the rotunda, blocking escalators and I have even seen people changing diapers in public corridors.

Regular patrons such as myself have complained about this for years. Finally someone is listening. Have they gone from one extreme to the other? I don't think so.
I think you realize just like the signs say "Our Games are for adults" for that matter so is the casino in general.
The Taj's policy now allows children if they are guests of the hotel, they are allowed in the restaurants etc. but I personally am glad that something has been done to make the place look a bit less like a zoo.