So how would I like to do Cabo...??

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I am tempted to rent a car, check out the desert scenery on the way to La Pas and Cabo Pulmo, explore those destinations as well as Cabo San Lucas, and try their activities as well. It looks like lodging in Cabo Pulmo is scarce and the one place I looked at mentioned 90 square feet rooms - wow, shared bathroom & kitchen! I need to look further I am sure.

I think you could really enjoy that, just avoiding Cabo San Lucus altogether and focusing on San Jose, Pulmo and La Paz, those are quieter, sleepier, cheaper places pretty different from Cabo San Lucas. That inner portion of the peninsula is quiet and desolate, some smaller fishing hotels where serious fisherman travel from the US to go to experience the excellent fishing opportunities.
 
We stayed in Cabo San Lucas for a week last year in February and enjoyed it. We stayed in the AI Riu resort (package deal), took the collectivo every day into town and dove with Dive Cabo. We only did 2 dives in the morning and then spent the rest of the day in the resort. As already mentioned, the diving is very different from anything you can find in the Caribbean. Different but very nice. In February the water was coldish (too cold for our 5 mm, we had to add a hooded vest), but August should be much nicer.

One of the important things to mention is that around Cabo San Lucas, there's only a handful of dive sites and the dive ops (at least this is how it was in our case) tend to repeat them very frequently throughout a week, partly because (again, this is from our trip) they usually get people who only dive one or two days, e.g. from cruise ships, and because these are the sites with the most/best marine life. They did try to cater to us though and we did a few dives out into the "corridor," which is along the shoreline going east, towards San Jose. There's also day trips available, Gordo Banks and Cabo Pulmo for example, which we didn't do but I hear they're very good.

We'll definitely be back in that area, but next time we'll probably stay in Cabo Pulmo. Cabo San Lucas was a bit of a "scouting" trip for us, to see what kind of diving this corner of the world has to offer, and with the AI package deal it was convenient and relatively inexpensive for us.
 

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