My friends Sara and John just came back from taking their kids on a long holiday in Bali. I've been to Bali twice, and everything you hear about the sweet and gentle nature of the Balinese seems to be pretty much true. Sara and John and their kids are every bit as wonderful, so it's only natural that they formed a bond with the local workers normally taken for granted by Western visitors. Sara writes up the experience here, and I highly recommend the read.
Warning: by the end, you'll be wanting to get on a plane and bring a truckload of money and school supplies with you.