How does it work anyway?
The video I seen was basically dragonborn asking children to home with him/her/it, dragonborn probably offered candy.

Maybe there is some market but if you have find them in the cities then it will probably just be the children already there, I don't see how they can't add other kids to towns and such.

they probably will add new kids. one of them in the trailer is new. also i think you'll have to go to the orphanage or you can find a few kids begging on the streets

I wish, I wish, but something tells me that my wish will not come true this time.

http://www.elderscrolls.com/community/skyrim-team-diary-6-hearthfire-0/

it wasnt quite how i said it but it says something similar near the beginning
"Beginning with a small, one room cabin in The Pale, Falkreath, or Hjaalmarch, players can eventually construct a fully functioning home with more features than you could possibly expect"

YAY!!! FAMILY ADVENTURE!!!

does this mean we can Fus-Ro-Dah our children and see if they comeback to hate me?
do the children have moods.

Isn't there a woman in whiterun who has a kid who runs a stall, wonder if you can now marry her and take her kid in?

Yeah, they are racists! Come on let's get our pitchforks and let's pay them a visit!

puppies!!!! :3

Really now. If the developers didn't like Khajiit they wouldn't have set them apart from Skyrim society by putting them in travelling caravans; they would have just scattered them into the towns as generic citizens. And there still wouldn't be Khajiiti children. Let's come with a moons based excuse.