I don't know why the "experts" are fucking with you but it does have potential, it's going to take some work though. You already have one of the harder parts finished, you have it up and running.
In addition to the personal "here's what my kids did today" type posts, you want to start mixing in things like product reviews and recommendations (create categories for them). Give price comparisons for those products with affiliate links to places like ebay, amazon, overstock.com, etc (there's a shitload of places with baby products that also have affiliate programs), like "You can get the XYZ acme2000 stroller on Ebay for around $300, on Amazon it's $375, and at Overstock for $345", using your affiliate links for all three (or however many affiliate links you can get)
Use PHPBay to set up some categories with baby products/toys/vids/books/etc. (ebay affiliate), you can also integrate an Amazon store with baby products/books/vids/toys/etc.
Put up some deals/coupons posts (create a whole category for deals/coupons) that contain your affiliate links, i.e. "I see that XYZ has 20% off acme2000 babystrollers, this is one of the best baby strollers on the market....". Check out
Goldencan for some good datafeeds with constantly updated coupons. Check sites like slickdeals (there's many more) for the latest deals/coupons, this can also help find more merchants with affiliate programs.
Get rid of that Amazon widget, you'll be lucky to make .50 cents a year with that and only put adsense or YPN ads at the bottom of pages and posts as a last resort method of making a few cents off of anyone who hasn't clicked an affiliate link. I would remove them all to gether until you get some more experience and know where/when to use them, instead concentrate on making the money through affiliate programs.
Do some searching (here, google, etc) and get up to speed on Keyword research (so you know which keywords to work into your posts/articles), SEO and building backlinks.
To bring in more traffic, start commenting on baby/family type blogs and sites (there's plenty of them).
Also, start writing some short articles that are humorous or give good baby care advice and start submitting to the article directories.
Read up on gaming Yahoo answers, if done right this can work well.
Join baby-related groups/forums i.e. Yahoo groups.
There's many more methods of driving traffic, those are just a few that are easy to implement.
Later, when you have some experience, you can also use PPC to drive much more traffic.
The baby niche is actually a pretty good niche, good luck and keep at it.