beart72: Haven't been to Alaska yet (doing that one in August 2006), but have been through NYC both as an adult and as a kid (many, many moons ago). I have to say that I disagree with those who say that your kids will not remember the trip(s)..... I was only 5 when my parent took us down to NYC, but I still remember many of the highlights to this day --- actually, I can remember some of "those" events more clearly than the events of yesterday (probably early-onset Alzheimers or something).
Either trip is viable since you will be spending time with your children, and your children will be spending time with you, but in a different, exciting, out-of-the-norm setting. What a great bonding time for all of you. The only thing, if I may, that you don't want to do is project your own bias of the trip onto your children (e.g. "been to both destinations and could care less about Canada...."). They will pick up on it. While NYC and Canada may be old-hat for you, it's a brand new experience for them.
Back in my day, car trips were the vacation pass-time rage, (ya know... Route 66 and all that), and my most vivid, and best, childhood memories come from having shared time with my parents, just travelling around the country. Don't have either pictures or my parents any more, but I do have the memories....