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Big Island Hawaii - Where should I rent a house?

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Hawaii experts, I would love your advice...

I'm in pre-planning mode for Hawaii Summer 2010. We're planning on renting a house for a week on the Big Island. I've been to the Big Island in the past, so I'm familiar with most of the areas. I'm looking for something beach front, not too far away from Volcano for a day trip, good snorkeling, nice beaches...

A little insight into what we'll be doing and what we like:
*We will be cooking most of our meals so we don't need to be in proximity to any restaurants, but would like to be fairly close to at least one supermarket for supplies.
*We love the lushness of Hilo, but are afraid that it will be too rainy with our kids. The kids love the beach and hate long drives, so we want to be close to as many types of beaches as possible.
*We have spent the last 2 visits on the North Shore of Kauai, which we love.

I was initially thinking maybe Kealakekua Bay? Any other suggestions?

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