I have stayed at the Island House a few times and would not consider it Upscale or having high quality rooms by any means. Not that it isn't comfortable but from the tone of your question I assume that you desire something very nice. Unless you are locked into an all gay resort I would recommend The Paradise Inn
http://theparadiseinn.com/ It is gay owned (or at least the last time I was there it was) but not an all gay resort. Wonderful rooms, great common areas, pool etc.
I just find the Island House a bit too much like a bath house for my taste.
SAM