You can take my thoughts for what they are worth... I think you are easing them into idea of bedtime just fine, they just don't agree with it!
I have one child so far, 15 months, and he is in constant motion unless he is sleeping, even when I am reading to him. His bedtime routine is pajamas, brushing teeth, being put in his crib w/a hug & a kiss, and a short prayer. I think just having a few steps in place lets the kids know that bedtime is coming. I have no expectations that my son will ease into bedtime like an older child or adult would appreciate.
My son sometimes fusses for 5-10 minutes because he doesn't appreciate the break in the action, but then he is fast asleep. If my son had his way, "bedtime" would consist of playing until 10:00 p.m. and then passing out wherever he was, I'm sure of it. :-)
I think your bedtime routine is fine. I don't think it's reasonable to think a toddler will embrace bedtime--even older kids like to employ delay tactics. The important thing, IMHO, is that you have a few steps in place, and you do. I have no recommendations for you, except if you want to stop the sippy cups right at bedtime, *start* the bedtime routine with them. Give the cups in the kitchen or living room or wherever else will be less of a mess. If nothing else, they should be brushing their teeth *after* the milk.