S.B.
I think the beach is the way to go. If you are staying in Michigan one of my favorite places to go is Petoskey/ Harbor Springs area. It is about 4 hours north and it is beautiful! There is so much to do for a young family. The Petoskey State Park has the best beach in Michigan. Your little one will love it. There are lots of condos available in that area for about the same price as a hotel. It is hard to eat out all three meals, especially breakfast. My parents have a condo in Trout Creek- in Harbor Springs. They have three pools, swingsets, tennis courts, and lots of nature trails. Their website is : troutcreek.com
I highly recommend it!
S.