Hotel is about 1.5 blocks from the beach and located pretty well for the overall San Diego area attractions. Staying up here in Mission Beach I think is a great idea, because it's beautiful and not quite in the middle of too much action and busy city stuff.
The rear of the hotel is right on Mission Bay and "Sail Bay", where you can do water activities like SUP, sailing, etc. I personally didn't get into the water and I would suggest going to the real beach if you want to swim and frolic. There is lots of sand, however, for the kids and there is a long path that goes in both directions that is great for walks, running, Segway riding, etc. By the way, I always thought Segways were pretty silly devices and I admit that I was wrong. Do this with your family/friends, they rent them right at the hotel and teach you. In 5-15 minutes, you'll get comfortable and have a blast.
The grounds are nicely done, everything from the tropical lobby with waterfall to the exotic birds they have outside that you can interact with every day. Service is good, the restaurants have actually pretty decent food (though you really should try some of the great things out there!) and overall the stay was really fun and relaxing.
We had a room in the tower and it was nothing special with good comfort and amenities. The bungalow type buildings are nicer and very comfortable. Overall, a really good property, though I'm hard pressed to hand out a max rating/excellent. Nothing really wrong here, but you have to be pretty special in my book to get an excellent rating.