I guess we are all different and we each have our own philosophy of what makes a good vacation. I can certainly see the draw of an all-in-one vacation resort - especially if you have kids. When we took our kids to Hawaii, back when we were just tourists and not residents, it was difficult keeping them "occupied." We found all sorts of things for them to do (surfing lessons, organized tours, beach activities, whale watches, historic tours, etc.) They seemed more interested in watching videos and playing video games. So first - know your kids.
Resorts in general - I've never actually been, though I've visited Disney world in Orlando. It was fun and there's lots to do. I never felt the need to stay at the resort, though it would shorten your day. I'm sure they count on that to fill the resort. Staying in an independent hotel and traveling to Disney World meant an hour each way, at least. The all in one has its appeal, but I get the feeling an enterprising entrepreneur could do the same thing in the middle of a big city in Minnesota or Ohio - I think it's actually been done. Just build a big all-in-one resort under lots of glass and put in a few fake palm trees. People should flock to it and pay half the price of the Hawaii (or Caribbean) experience.
I always felt that a "walled off" resort was artificial. And to that point, the Ewa coast where the Hawaii resorts are is pretty much artificial - even the beaches (though well done as nearly as I can tell.) Except for the sunshine, you could build these places in Ontario if you had enough building materials.
Absolutely not bashing the resort experience - as mentioned, I've never really done it. So here is what we used to do. Find a medium priced hotel with a pool at LEAST across the street from Waikiki beach (drops price in roughly half). Rent a car for half your stay (very expensive when you add in hotel parking, though I found ways around that.) Travel and explore the Island all day and sleep in the hotel at night (do some night life if you have the energy.)
This probably isn't ideal for kids/grandkids but for "people" - esp. couples - we loved it and could easily stay 2 weeks for the price of a less-than-week in a resort. Again, know yourself and anyone you would bring because this is very much a YMMV situation.