We just stayed at Cabo Villas Beach Resort. Rented through VRBO for a good price and the trip was amazing. The location can't be beat, it's right on Medano Beach and walkable (longer walk) to the marina. In the evenings we'd take a taxi into town, and during the day we'd walk down the beach into the marina. They've got multiple on-site restaurants with the Baja Brewing Company on their roof, and a great beach restaurant in the sand.

Lots of water taxis and activities right out on the beach in front. We had an awesome day where we had a water taxi give us a short tour out to the arch (with great knowledge of the environment and history), then he dropped us off on a deserted beach halfway between the marina and the arch. We bought food at the beach restaurant and brought it with us to the beach and had an amazing afternoon.

It can get a little louder at night with live bands playing at the Baja Brewing Company, but it's not going all night long. The rest of the resort is fairly quiet during the night and day. There were several families with infants in the pool during the day when we went in September (we left our 2 year old at home with grandparents).

We picked up some groceries/snacks/drinks with our driver on the way in from the airport, but ate all our meals out. There's a large costco-type store within walking distance that you can shop at using a 1-day membership you buy cheap.

I think Villa del Arco and Villa la Estancia (right next door) are also good choices. Estancia is a little quieter and nicer (more expensive), and Villa del Arco is a little more family (i.e. young kid) oriented. Both are further up the beach so not as walkable to the marina. All offer studio, 1, and 2 bedroom condos I think.

We didn't do it, but everyone we talked to said to go visit Todos los Santos, and that they all loved it. You might want to check it out as a day trip excursion.