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Go to the Gili Islands! It is a 2 hour boat ride from Bali. The Gilis are 3 islands (Gili Trawangan, Gili Air and Gili Meno). Gili T is the party island, so if that is not what you want then you should go to Gili Meno.

Gili Meno has white sands, is chill and a PADI Center. The area is known for sea turtles and you are almost guaranteed to see some on dives.

Nusa Lembongan was really chill and I heard the diving was good (didn't try it though). It's a 30 minute ferry from Sanur, Bali. The beach where you arrive - Jungut Batu - isn't that nice because it's full of boats, but the other beaches are pretty. Dream Beach or Sunset Beach fit the bill for what you're looking for.

Since Travelfish doesn't cover Nusa Lembongan yet, check it out on Wikitravel -- http://wikitravel.org/en/Nusa_Lembongan

Amed area is a good place, and most hotels are 5 metres away from the beach. Yes I mentioned hotel instead of hostel. Because this is another super-secret. The hotels are situated close to the beach, but for now, charges very low season prices. 100K Rupiah to 150K Rupiah for a room with a swimming pool, and 5 metres away from the beach! (plus breakfast)
I've spoken to some locals manning a minimart. She says high season is July and August, whereby everywhere is full because of tourists from Australia (Australian winter escape).

You would need a motorbike to get around. Because simply there's no touts of taxi, or public transport readily available. I met a French family, they were snorkelling off the coast everyday by themselves, and different new spots daily. And then they are back at the swimming pool!

Here is really "kampung" and one way to tell, is there isn't much local food stalls at all. Yes, this is a good observation and I asked some locals and do some research. Balinese people (specifically) combine their meals into a brunch. Balinese family usually cook the whole day's meal (stew, soup, salads, rice) in the morning, and before noon, it's ready to be served. Eating out is a luxury or not-essential since we have food at home right? And usually just re-cook the leftover meal for dinner. Again this applies to really out-of-city folks, and those of lesser income and traditional Balinese family. And in Amed and North East area, which isn't that rich, that's life.

You will see restaurants run by the hotels along the main road, overcharging the meals. There are no little warung or nasi padang (nasi padang is Padang, Java style). There is though little pondok selling hot coffee (2000 Rupiah), bottled drinks.

So back to snorkelling and diving, there are many places and many diving operators here. And they are sure willing to give a discount. Feel free to compare. Jemeluk, Japanese wreck, Meditasi, among the places I recalled - that the French family were talking about. And yes the Japanese wreck is NOT the one in Tulamben. It's a spot that is close to the coast, for snorkelling! Their kids love it.

Amed area is rather hilly, and at one hilly terrain, you could look back, and see the majestic Mount Agung with the seaview below. Awesome, and a unique perspective of Mount Agung as compared to the usual viewing points in the middle of Bali.

For food, be prepared to perhaps buy some stuff first before coming. If you've a bike, then you can bike out to say Amlapura to eat. I even biked to Candidasa for lunch.

I agree with Lembongan!!

... and if you're into diving look up the guys at Blue Corner Dive - they're a couple young guys who started up a rustic dive resort on the beach... and throw a fun friday night party - swimming pool and beach fire, what could be better!! facebook page: www.facebook.com/BlueCornerDive