I lived in Utah for 17 years with no extended family around. I've also lived in North Carolina, California, Idaho, Florida and Alabama so I know what's it's like to live as a member outside the Beehive State.
1) I've heard a lot of crazy things that members try to pin on Utah Mormons but this is honestly the first time I've hear of this concern. Your kids will have no problem making friends.
2) I always laugh when I hear Mormons outside of Utah wondering if they'll fit in with other Mormons. Don't worry, you'll be fine.