As long as the Chihuahua is treated good then yes Chihuahuas make wonderful family pets and are good around Children and people.
They do tend to bark a lot but can be very protective to the owners of them.
Chihuahuas also have a very good sense of hearing just like other dogs and can tell if someone is coming up to your door and will alert you.
My mom has a Chihuahuas and he can tell when someone is coming to the door as soon as the person pulls up to the house or starts walking to the house.