Probably. You really need to get as far away from Vail/Summit County as possible after Dec. 26. Copper on Dec. 26 is probably OK. Steamboat is busy but reasonable. Aspen is better. Wolf Creek may be better yet, and it's sort of on the way home for you, thus less driving than Aspen or Steamboat. The only downside is there may not be much to entertain your grandparents in that region. Anachronism is welcome to correct me if I'm wrong about this.
I definitely endorse the East Vail lodging for the front end of the trip.
Wolf Creek is busy. You can expect the parking lots at the lodge to fill that week. Lines for the ticket window will be several minutes. Lines for the bunny hill (Nova) and the beginner lift (Raven) will be solid to interminable- especially Nova. Raven will likely be around 5 minutes until mid-afternoon, and expect lots of lift stoppages.
Alberta is almost always ski-on service on peak holidays, even on powder days. I had a December 26 (or something like that) day up there that I almost didn't show up because I didn't want to deal with crowds. Crowds at the base were busy, but over on the Alberta side, it was even more deserted than a typical powder day. I spent hours and hours making laps in unmolested 15" of snow.
So, given that skiing the week in question will be the busiest time of the year at almost any ski area, I think it is very doable at Wolf.
As for grandparent entertainment, you can probably manage a few days of such. The hot springs in Pagosa will definitely get you a day. Schedule them for a trip on the Durango train and possibly Mesa Verde (limited stuff open in winter), and trips to the mining towns like Creede and Silverton.