Wanted to give a 3.5 but couldn't bring myself to call the place a 4/5 "very good". If it were less expensive, then maybe. So I think 3 is fair.
My wife and I are among the group who have stayed at Dancing Coyote Beach several times in the past. We actually stopped going because the set-up is not quite our style. However, our other go-to VRBO wasn't available any more, so we thought we would try it out again.
The place is pretty much how we remembered it ~5 years ago. It's nice, but we actually prefer rentals that provide some food/coffee supplies relative to the length of your stay and then don't bother with daily cleaning. We got the beach-front unit this time, which we never had before - but it was a little disappointing due to two families with two sets of juvenile and teen-age children running around the property throughout the day. The neighboring unit's shower was outside directly behind our patio with a thin wood divider - it was like we were in the shower with them. Walls were thin and we could hear them inside the unit, as well. Not the private get-away we prefer for the area.
We were also a bit disappointed when we arrived at 3:45pm to find the cleaning people still there. I noticed a few upgrades since we were last there, but they seem to be in the spirit of simply maintaining rather than adding anything new or interesting. Looks like there was a new oven unit poorly installed with holes left in the wood were the knobs of the old oven used to be, a new/boring/ugly plastic drip coffee maker, and a fresh coat of teal paint on the fireplace. The cushion on the balcony was moldy, one of the curtains didn't work, the "comforter" and pillows were old and quite uncomfortable, and my english muffin was soggy (from condensation in the min-fridge, I guess?).
So just a bunch of little things, but considering the price, they add up and bring the rating down.