Outer Banks, NC! We have been going with extended family since I was 10. We try to never miss a year. It is so laid back and family perfect. We go to Hatteras Island. There are lots of other islands in the outer banks. You can rent a fully equipt house on the water for way less than a vacay in FL. You can cook in the house, grill out, or go out. Food is fabulous in the restaurants there. Beaches are perfect for setting up for the day and staying for hours. No McD's on every corner. It is all mom and pop. We just love the laid back atmosphere and easy rentals there. It is a water lover's mecca.
DH and I went to Ocean Isle Beach, NC. It's not the Outer Banks, but it is lovely and definitely mom&pop ish. It's about 10-12 hr drive (can't remember exactly). The other nice thing is that it's 45 minutes from Myrtle Beach if you do want to more of the touristy stuff.
Re: Where should we go on vacation?