Think when I went a couple of years ago we stayed at the Royal Grand in Sharm El Sheikh. Weathers great if anything it gets to hot, if your at a hotel that's all inclusive then you can hang around the pool drinking all day, plus at the hotel I was at the food was great and they dishes from all over the world, you can pretty much each through the day. So I would recommend going all inclusive and I went in June so I wouldn't know what the weather is like then but I assume its no where near the high 40 odd/50 degrees Celsius it was when I was there.
If your going with the missus and she's decent then prepare for her to get pested, I got offered like 10,000 camels for my ex on more than a few occasions, in hindsight I should of took the camels and scarpered.
The trips are something that you must do, we went snorkeling along the coral reefs, the seas are clear as anything so you see everything, all sorts of fish, sting rays and eels. We even seen dolphins jumping around on the boat trips. We also we further up the red sea, went that far up we could see Israel from across the see although it was a bit of a pointless trip. Be sure whatever you do to arrange the trips from the reps inside the hotel these are the safest trips, the hotel wouldn't let them work inside otherwise.
Outside the hotel and trips I thought it as a little bit dodgy, just like the people, and although it never happened to me you have to watch out for pickpockets, generally kids doing the dirty work. There is a market that everyone goes to as well, its like a strip of shops, you'll either enjoy it or hate it. We were lucky and found the best places, there's a pretty posh bar although the drinks were bloody steep and we didn't find out till we bought them, there was also a Hard Rock Cafe we stumbled upon and we were even luckier when we found an Irish Bar there. Beer was good, people were normal, trust me the over-friendlyness starts getting to you after two weeks. I went during the last world cup, so the Irish bar was great for the beer and football, but the hotel had tv's as well.