We do a huge family trip (about 40 of us) to Destin each year. We always stay at Southbay by the Gulf. (We have been going there for over 20 years) They are all 2-3 bedroom townhouses and are individually owned, so some are nicer than others. They are Beachside but the property is quite large so you can rent one that is beachfront or you can chose lakeside, poolside or further out, depending on preferences and budget. Southbay is right across from Big Kahuna's water park. Traffic is rough getting in and out of Southbay but that is how it will be anywhere on the beach in Destin during the summer months.
If you want a high rise, Jetty East is one that my parents have stayed in and enjoyed. I have never been there myself.
If you want to consider saving a little money, going somewhere a little less crowded and staying just a bit to the west of Destin...my parents own 4 condos in Gulf Shores, AL. that they rent out. I can attest to the fact that these are nice...I was there just last week.