First, with the exception of New Year's Eve, you'll have the city to mostly to yourself. Especially on New Year's Day - when the streets were completely empty. So you can get those pictures in front of Nyhavn without having to compete with a bunch of tourists.
Second, if you're there for New Year's Eve, check out the party down at City Hall Square (or Rådhuspladsen in Danish). It's crazy and dangerous so it's definitely not a place to bring your kids. Imagine standing around with thousands of people and fireworks going off all around you. I dont think there's any regulation on who can set off the fireworks so, go at your own risk. Check out our photos here.
Other things you should know about Denmark - they have a 25% VAT on almost everything you'll come across as a tourist. So, for us Americans, it's pretty damn expensive (like the other countries in Scandanavia). If you're a strict budget traveler you may want to steer clear.

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