I put off booking our trip from 12/29 to 1/5 until now. I am going out of OKC with my family of 5 (kids 12,9,6). I cannot get plane tickets under $529. I could swallow this if I could find a great hotel deal. Dreams and Marriot are booked. Sheraton is $359 for 2 double beds.
We do not want all inclusive (we grab and carry 2 meals then like to go out for restaurants for the last).
I want clean and convenient.
We are planning canopy tour, snorkeling, whale watching and playing on the beach.
Any suggestions?

If you truly mean only "clean and convenient" you can check with:
Hotel Rosita
The Tropicana
Hotel Playa Los Arcos (3 properties)
Vallarta Sun Suites & Hotel

We just booked the Playa Los Arcos hotel for the first week of December. We got a $200 off deal through Continental Vacations. Since your going during the New Years holiday, you will probably pay a higher rate and not find any deals, but it wouldn't hurt to look. Check with all the airlines carriers and on-line travel booking companies. Might even check with a travel agent.

Are the hotels always this expensive or have I just hit peak season?
We like a nice pool but try to hit the local beaches.
When we travel we like to go see the places not just our hotel.
I am not opposed to spending up to $250, by higher seems excessive.

<b>Are the hotels always this expensive or have I just hit peak season?</b>

You hit one of the two peak weeks ...

Christmas week is expensive and you are looking at upscale properties. I've never paid more than $100 for hotel rooms in PV (even at Christmas).

Traveling during a major holiday you will pay a higher rate for it.

If your trying to book a package, ie. air and hotel, you will more than likely not find any deals during a major holiday.

If your willing to book air and hotel separte and go with a lesser known local hotel as suze suggested, you might find a better rate, but air will still be high.

In the future, if you are planning a holiday getaway, book as early as you possible can. The closer to the holiday, the higher the prices will be and many hotels will be sold out.

It took me a month searching on every possible web-site to find the deal we got on Continenal Vacations and I booked it before it disappeared.