First things first...go price the itin. You might find good paid fares from Bay Area to Maui. I see cheap deals from there all the time.

Second, the Avios route is the way to go. If it's a two-cabin plane, you will *not* get the three-cabin F service you may be envisioning. It'll be more akin to a normal continental U.S. F service, totally *not* worth the miles.

But worth 25k Avios R/T for a coach seat? Assuming you aren't finding a cheap deal, then absolutely yes - West Coast to Hawaii a popular use of Avios around here. ^ In my limited AS experience, they do not treat non-elites too poorly. Perhaps because they get so many partner fliers and don't have as many "native" elites, they don't feel the need to make your life miserable like AA, UA, and DL sometimes do.

I would not convert AA miles to hotels - you'll get a very poor return doing that. Especially now that you have built a stash of AA miles that could take you a long way in terms of flight awards later, don't burn 'em up on hotels.

Are you tied to Hyatt? Do you need to be in a major-brand hotel? Your stay length (1 week) could lend itself nicely to a condo rental. Saves you a lot of money vs. a hotel and it's a much better experience if you aren't a top-tier elite in a major chain.