With 2 kids, no! No need to upgrade.
I've got 3 kids and own an outback. It's a cross over, is both a wagon and suv but doesn't look like an suv.
The only thing I will say is you might need space for pram.
When we went to Ireland in 2010 after our second was born, we hired a golf and we only had room for the pram, not much else in the boot.