If I had two kids, a Compact hatchback would be at the bottom of my list. Even if I wasn't interested in performance I'd still want a bigger car, hell I can't even get a weeks shopping for three people in the back of a Focus so how will they fare with two kids? What happens if they have a 3rd kid? They'll need to sell it and waste a whole lot of money in depreciation for something bigger.
Perhaps the wife just liked that particular car. Women judge cars by appearances. Puntos are not too bad but perhaps something more spacious like a Golf would have been more ideal.