I'd probably advise against drilling your current crank arms, especially if you plan on returning them to the original length at some point. The extra hole will significantly weaken the arms. Also, crank arms are typically thinner further up from the ends, so you don't have the thread depth to support the pedal. Also, you need some method to mill a flat for the pedal to seat to. So... if you do shorten them, you'll be back to hunting parts when the little one does outgrow them. Might as well bite the bullet now.
There is this option-
http://www.universalcycles.com/shopp...60&category=62