Thankfully it is not actual History (in the more modern sense of the word).
Though the books are inspired by God, I do believe God allows the time/context/beliefs of the writers of the bible to influence what is put down.
I think several things need to be taken into account.
1. Lack of Archaeological Evidence (anachronisms, etc) for the exodus (and numbers of people the Bible said participated).
https://en.wikipedia.org/wiki/The_Exodus Not even the modern Israel has found evidence for it.
2. Message of Jesus and viewpoint of God in the NT. I think we get a more accurate view of the nature of God (after all through Jesus we see the Father) in the NT then we do the OT. From what is in the NT, I don't picture Jesus/God as someone who would intentionally murder children to free other people from slavery, nor will he command his followers to slaughter other men, women, and children. Jesus loves humanity, especially children, and his message of loving ones enemies does not compute with a picture of God that has murdered Children. Killing a Child for the faults of the government the child resides in (or the parents sin) goes against Jesus's character. The death of a child would also brings horrible suffering to the parents. I don't believe this is what Jesus would want (and give) to people.
3. Context of the time (and what the people were experiencing) when the Exodus story was written.
a. Back then people were not as focused on historical accuracy, as they are now when discussing the past.
b. Biblical Scholars believe the Exodus story was finalized in its present from post-Exilic period. If that is true, one could see the importance of the story (even if it is not historically accurate). The Jew in that time were in Babylon and surrounded by other beliefs. The exodus story gave them hope (and also for other groups later in time, i.e black slaves) that God is looking out for them, and has a plan for them (this can still be true). That God is more powerful then the other gods of other societies/religion (shown in the exodus story with the 10 plagues). One could also read the story as God saving us from being enslaved by sin, and that he cares about us. This theological truth does not rest on whether or not the exodus is historical.
c. The writers of the exodus story lacked the NT viewpoint of God and our 21st moral standards (their violent world sure didn't help either) . Stories about God wiping out there enemies (or ordering it to be done) would not seem wrong in their eyes (they would see these stories of God's almighty power). They did not have notions of human equality or that they should love their enemies, that there is a Prince of Peace named Jesus. On the topic of Children, they did not have the belief that it was wrong to punish children for the sins of the parents (shown in the exodus story, stories about wiping out the cannanites, etc). In other words we are seeing how they viewed God. Which is why some views of God in the OT do not align with what we see in Jesus.
Im not saying everything about God in the OT should be thrown away, there is truth about his nature in the OT (especially theological truth). However I do think some examples of God's "actions" in the OT should not actually be attributed to his character. It goes to show that though God had a hand in creating the books of the Bible, it is also a human book(s) as well.