We are trying to decide what material to use to cover our yard ... does anyone have advice for pea gravel vs. wood chips?

We will still have a grassy area, but 1/2 of the yard needs to be replaced with something else (it's shady, and the dogs have made it impossible to grow grass). We'll use the space for gardening, entertaining, and general outside play. LO is 2, so I *think* we are past the put-everything-in-my-mouth stage.