Cocolobo is as nice as it looks except you'll walk to the West End (closer than it looks) for dinner. I rent a house next door so have walked over and looked around once. It is on ironshore with no direct dive access but the waves breaking there at night are pleasant to sleep by.
Other upscale properties within walking distance of West End Divers:
Xbalanque - arguably the nicest in the area - possibly on Roatan if you discount some of the larger house rentals. They have their own dive operation if you're not set on West End,
2BR a little farther down the beach - being built last time we were there so I haven't seen them finished.
Villas Del Playa -
2 Bed 2 Bath
Consider the water taxi also if you find something nicer a little farther away - it goes by most waterfront properties often (there's a lot of boats) and there's several regular stops on either side of West End - including I believe their dock.
West End Divers is a competent shop but they're no better than 1/2 dozen options in the same area so I wouldn't make that my focus in terms of where to stay. Also they - and Splash - are pretty close to the bars which are loud at night.
See Splash, Mariposa in about the middle of this map - now see Nova and Booty bar just south of there - two of 5-6 bars in that area - fine if that's what you want - fine but the "thump" can go on pretty late at night as it nears the weekend - probably Thursday on.
If you decide on West End - the water taxi station is just south of there also and you can usually flag one down anywhere along the West End as far north as Seagrape or all the way on the south side of West Bay.. IDK West End's situation but we dropped all our gear at Coconut Tree on arrival and they kept/cleaned it all week.
Don't miss Rotisserie Chicken to the south for a reasonable, outdoor meal. Also the upscale restaurant on Roatan is Ooloonthoo, just about a block inland from the waterfront.. Wins all sorts of awards, two seatings, reservations required and they may have a semi-casual dress code. Vintage Pearl at Bananarama is another good option - in West Bay but do Cab back, the road isn't safe to walk at night (jogs inland) and the water texi's often stop running at dusk. Argentinian Grille for steaks - it fronts Posada Arco Iris - can't miss it. Sundowners is a good relaxing beach bar - average food, sometimes a singer. Best thing is the beach chairs there - when the tide is in you can soak your feet while enjoying a cocktail. They close pretty early though most nights.
have a good trip,