We were at the Sharks Bay Hilton in Sharm in Dec for a week and it was fantastic. Didn't get any special Gold benefits, but can't beat $90 / night for an all inclusive resort. Food was very nice, staff was simply unbelievable...by the end of the week, seemed like we were old friends. And there were also TONS of ITalians...the entire dive operation was Italians, but they were spectacular (more about that later).
We came through Israel...flew to TLV, then to Eilat, walked across Taba, and cab to SHarm. Flight to TLV was $1200 (and upgraded to Business Class with miles), flight to Eilat was $75, cab from the border was about $50 (you have to negotiate this...you can also catch as bus for around $10). We went to Eilat on the way so we could do a day in Petra. Be forewarned that if you go in/out of Israel, you have the potential for long questioning at security (we didn't have a problem and I haven't in my past trips).
I'd also have to say that the diving is EXCEPTIONAL. There are a number of dive operators along the coast to choose from, but we went with the one at the resort. It's a bit pricey, but worth it. You can do day trips to Ras or to Tiran Islands, local boat dives, or shore diving. One of the best dive operators I've ever used (and I've been diving all over the world for around 15 years). You put your stuff in a crate and they lug it everywhere for you. If you shore dive, only thing is you suit up before climbing down, but the shore diving is some of the best anywhere.
The resort is mostly Europeans - we were told by many staff that we were the only Americans they've seen in a couple years. If you stay in town, the prices go down significantly for both the hotel and diving (except for the Camel Dive Club which seemed way overpriced).
Went to Dahab 13 years ago and back then the diving was also fantastic. Dove for 5 days from the shore and did a lot of exploring into uncharted sites. Hilton or bedouin village were the only options back then so I opted for a place for $3/night in the bedouin village. I have heard that it is now very built up and the diving is not as good as it was back then.
As far as getting around, it's gravy. The Shark's bay has a regular shuttle into town and there are tons of taxis out front that you can hire (if you want to go up to Mt Sinai, hire your own cab...it's really cheap). Don't waste your time arranging for a car inside the lobby...way overpriced.
Never felt unsafe. I'd be a bit more cautious if going into mainland Egypt, but the Sinai has been historically safe (except the couple recent incidents). There are police and soldiers everywhere and lots of security checks as you are driving between towns. I recall living in London back in the early 90s and there were tons of IRA bombings (sometimes almost daily).
Sorry for the long post...I should have posted a trip report when I got back and I guess this is it
PM me if you have any more questions.