I haven't stayed there but have toured and spent time on property. It is a converted hotel but the resort is beautiful. The 2 BR for the most part have a good view, the 1 BR tend not to have much of a view and have a very small kitchen. Personally I'd accept it but it is likely below DVC's standards. You may want to know that in reading the TUG reviews on this resort, there is a DVC member review that is VERY negative. I'd rather be at one of the Marriott's or the Embassy but would put Hanalei Bay as the fourth choice on the DVC-II list.
BTW, the timeshare tour was moderately high preasure but not that bad.