Better idea? Not really. Chuck E Cheese is tried and proven. Kids love it. Parents, not so much.
Giggles is attempting to cater to a more upscale, wealthier clientele. The food is more expensive, but it's somewhat healthy. There are a few video games, but most of the kids play area is dedicated to physical activities, or events like cupcake decorating, karaoke, whatever.
Chuck E Cheese caters exclusively to kids, Giggles wants to cater to parents.
Let's see if both can co-exist. I think they can. It's not much different than Shake Shack vs McDonalds. Starbucks vs Dunkin Donuts. PF Changs vs Panda Express.