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Ambience
It is like divers, can be fun but they know they have to dive so, they behave... Cozumel has places to have fun, but party is not the main attraction. the most important thing to do is to dive, period.

Ideal for
Divers and their families. Once you go to Cozumel you will always come back. I know people who have returned many, many times.

Not ideal for
Party animals, singles.

What is in there?
One of the most beautiful and largest coral reef in the world. Jacques Costeau kind of "discovered" Cozumel and now, it is time for you to discover it. (Costeau, a French diver, was at his time the most famous diver in the world).

Shopping
Shopping is good enough for Mexican souvenirs. The choice gets more interesting when we realize that perfums, make up and jewerly have very attractive prices, because Cozumel is a duty free paradise!

Food
There are not to many restaurants over there like in Cancun or Playa del Carmen but there are still some options. Anyway, visit the market (mercado) and have lunch there. Try some local food as Cochinita Pibil, Menudo, Papadzules, Frijol con Puerco and other Yucatecan food.

Enterteintment & culture
Cozumel has also some archaeological sites but not all of them are in very good conditions. Almost all ruins show an architectonical style which belongs to 1200-1550 A.D. I strongly recommend you to visit San Gervasio ruins and either rent a car or get a tour. If Cozumel cannot compete with gorgeous Maya ruins like Chichén Itzá, nobody can deny that in Cozumel it is located the most interesting museum for the Maya civilization in the whole region. This museum has also an excellent explanation and images of the coral reef system. this Museo de la Isla de Cozumel has, also, cultural activities.
You now that older traditions are stronger than the new ones, so when we talk about the carnival, the best one in the whole state of Quintana Roo is in... yes! Cozumel, but as you know, this catholic tradition changes every year, please check it.
Sightseeing. Walk around the main plaza, take a romantic calesa, walk with the bolulevard that runs along the coast, get into different bars and restaurants, do some shopping, listen to the trios (video) look at the other side of the ocean (yes, that is Playa del Carmen on the other side) and visit a very typical church (which Cancun, neither Playa have).
Fishing is another very good option, specially from May through August.
Jeep tour. Take a jeep with your family or fiancée to the west side of the island. That is something nice you will never forget!

Natural Parks
At the south of the island there is the Chankanaab Park, which will be great for your children and the whole family. Chankanaab is kind of XelHá or Xcaret, but smaller. Here, besides the beach, the snorkeling and diving, there are some water activities and, as it is getting more usual now, the opportunity to swim with the dolphins (kind of $120 u.s.).

Night Life
Nigh life (video) in Cozumel is not as exciting as in Cancun, but you can always get to the local night clubs or get to Playa del Carmen, where some night clubs start to give a nice offer.
Anyway, Carlos and Charlie's (video) , Hard Rock Cafe and Planet Hollywood are some of the hottest places you can visit.

Transportation
Well, the best option is to get there by plane, but if for some reason you take a different option the best way is to take the ferry at Playa del Carmen and then in Cozumel you can rent your car. If you are driving, take the ferry in Puerto Morelos (I am sorry to insist, but please, never ever take the ferry for cars, it is a nightmare!!!).
Ferry for people to Playa del Carmen: 4, 6, 7, 8, 9, 10, 12, 14, 15, 16, 17, 18 and 20 hours. Ferry to Puerto Morelos for cars and people: 5, 10:30 and 16 hours. Ferry from Playa del Carmen to Cozumel (people only): 5, 7, 8, 9, 10, 11, 13, 15, 16, 17, 18, 19 and 21 hours. Ferry from Puerto Morelos to Cozumel (cars and people): 5, 10:30 and 16 hours. Taxis in Cozumel have reasonable prices but you can also take a romantic calesa (as seen in the pic).

Dress code
Well, well, just take it easy, these are vacations! As usual, my recommendations: linen, cotton, sandals, comfortable shoes and something nice for the evenning.

Clasification
Top of the world for diving.

Comments
Afetr hurricane Wilma some people are worried about conditions. I have to recognize that people of Cozumel suffered more than any other how were beaten by this hurricane. They also had the help later than us (in Cancún), but everybody in Quintana Roo State must to recognize that people in Cozumel worked harder than anybody else. Yes, the vegetation was damaged, but not everything and I am pretty sure that Cozumel looks better than any other place in the whole region.

Cozumel hotels
First, all hotels are divided into three sections of the island, then my comments.

Cozumel: sections of the island
North of the island and marina (nice beach section)
Downtown area (cheaper, no beach front but good)
Chankanaab Park area (far away from downtown, forget walking!, good beaches and diving areas)
South excellent beaches
Playa San Francisco beach area (at the very south of the island, good place for divers and beaches)

Beach conditions Beaches in Cozumel are not that gorgeous as the ones in Cancún or Isla Mujeres. Anyway, there are nice beaches here with the advantage that almost all them are close to the coral reefs, and if you ever feel that you are trespassing private propierty, you have to know that in Mexico al beaches are public. the east part of the island is not so visited... unless you have a car (anyway watch this video of the beach @ the east side )

It is always the west side of Cozumel the best: the best coral reef, the best beaches, the best hotels and all the population. In case you want to see the eastern beaches, you will have to rent a car to get there. The following is a descripttion of the best three beaches in Cozumel:

Playa San Juan is located in the middle of the Marina and Punta Norte. The Melia hotel is located just right there. This beeach has lots of services, which is great in case you forget something.

Playa San Francisco beach is made of two beaches: Playa Maya and Playa Santa Rosa. this beach is 3 miles long and it can be crowed during the winter by cruise ships passengers and also the locals. The people of Cozumel (named Cozumeleños) love to come here to eat, drink and party. There are restaurants, volleyball nets and some water sports facilities. Some times boats will approach to these restaurants bringing the divers for lunch (I did it many times!).

Playa Chankanaab Beach. Chankanaab has a very nice beach but, as well as Xelhá, when you visit Chankanaab is because you want to snorkel or dive. There are many options here: the beach, swimming, snorkeling, diving, visiting the botanical garden (in bad shape becasue of the hurricane Wilma).
Diving.

Playa Uva beach.

Yes, Cozumel is the best place you can choose if you are planning to snorkel or dive. And if you want to do it but you don't have the PADI or NAUI license, do not worry, there are plenty places where you can get some lessons and get your certification.

When snokeling or diving, alwasy remeber that a coral reef is like a Manhatan building, and every floor has different species. It is really a very nice thing to do. But please, use only biodegradable sunscream and never touch the reef, for you can get burned, cutted or have some alergic reactions. Remember that touching the reef eventually kills it... be careful and thanks!

I recommend to visit this place and check this great map of the reefs in Cozumel, I believe it is very complete.