Ocean city is cool. i spent 9 weeks paid basic training in Cape may, too. It was OK, the accomodations were spartan, but the wakeups were a beast. learned lots, though
My SIL rented a very nice 4 BR house in Avalon, bout a block from the ocean. We had 5 women & eight kids in the place and it didn't feel crowded.
Cape May is nice, there are really nice parts of NJ. Where we camp in the summer its by a cedar river and its all woods. Great places to ride motorcycles. Nice boat...my ex & I had a charter boat out of Pt Pleasant awhile back before they started making all kinds of fishing restrictions.