Over done highpass filter or unsharp mask. way overdone. I would crop into your family closer to get rid of the over exposed sky and so the family becomes viewable. As it is they are too small to make a good portrait.
Neither of them, sorry. To be blunt, that's just plain bad compositing. Irrespective of the sharpening, why use a sub-alpine plateau when you're standing in a grassy field - even if the exposures of the two images matched, it would look wrong.
im sorry but i must echo that neither is done very well...the levels are way blown out, and the cutting around the mountain line is poorly done (or it;s an extremely blown out sky)
but that is a BEAUTIFUL spot, so def go back and im sure you will get great results!
Thanks all for the comments! These had absolutely no sharpening done to them. I believe it is the compression through flickr that is making them look this way. I'll have to see if I can upload a better version. The faces on these look really bad...